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Redwood Trust

Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.

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Redwood Trust (NYSE: RWT) reported $24 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 7.7%. EPS of $0.08 for the same period compares to $0.11 a year ago.

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Redwood Trust Inc

Redwood Trust, Inc. 9.125% Senior Notes Due 2029

Redwood Trust, Inc. 9.00% Senior Notes Due 2029

Redwood Trust, Inc. 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock

<p>Wells Fargo  analyst Donald Fandetti   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Equal-Weight and raises the price target from $7.5 to $8.5.</p>


Price Target

Analyst Ratings

Wells Fargo Maintains Equal-Weight on Redwood Trust, Raises Price Target to $8.5

<p>6 analysts have shared their evaluations of Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.</p>
<p>The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Insights from analysts' 12-month price targets are revealed, presenting an average target of $7.92, a high estimate of $9.50, and a low estimate of $7.00. This current average has increased by 8.64% from the previous average price target of $7.29. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1726776081_0.png" alt="price target chart" /></p>
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
<p>A comprehensive examination of how financial experts perceive Redwood Trust is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stephen Laws</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$9.50</td>
<td>$8.50</td>
</tr>
<tr>
<td>Crispin Love</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Neutral</td>
<td>$7.50</td>
<td>$6.50</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Raises</td>
<td>Buy</td>
<td>$7.55</td>
<td>$7.25</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$6.50</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Raises</td>
<td>Market Outperform</td>
<td>$8.50</td>
<td>$8.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$7.50</td>
<td>$7.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li><strong>Rating:</strong> Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts provide insights into price targets, offering estimates for the future value of Redwood Trust's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Redwood Trust's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Redwood Trust analyst ratings.</strong></a></p>
<p>If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.</p>
<h2>Delving into Redwood Trust's Background</h2>
<p>Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.</p>
<h3>Unraveling the Financial Story of Redwood Trust</h3>
<p><strong>Market Capitalization:</strong> With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.</p>
<p><strong>Positive Revenue Trend:</strong> Examining Redwood Trust's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of <strong>52.16%</strong> as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.</p>
<p><strong>Net Margin:</strong> Redwood Trust's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of <strong>21.71%,</strong> the company showcases strong profitability and effective cost management.</p>
<p><strong>Return on Equity (ROE):</strong> Redwood Trust's ROE excels beyond industry benchmarks, reaching <strong>1.11%</strong>. This signifies robust financial management and efficient use of shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of <strong>0.08%,</strong> the company showcases effective utilization of assets.</p>
<p><strong>Debt Management:</strong> Redwood Trust's debt-to-equity ratio stands notably higher than the industry average, reaching <strong>12.99</strong>. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.</p>
<h2>What Are Analyst Ratings?</h2>
<p>Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.</p>
<p>Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.</p>
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<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Cracking The Code: Understanding Analyst Reviews For Redwood Trust

<p>Raymond James  analyst Stephen Laws   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Strong Buy and raises the price target from $8.5 to $9.5.</p>


Raymond James Maintains Strong Buy on Redwood Trust, Raises Price Target to $9.5

<p>The&nbsp;third quarter&nbsp;2024 common stock dividend is payable on September 30, 2024 to stockholders of record on September 23, 2024.</p>


Dividends

Redwood Trust Boosts Common Dividend By 6.25% From $0.16 To $0.17 Per Share

<p>6 analysts have shared their evaluations of Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.</p>
<p>The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $7.55, with a high estimate of $8.50 and a low estimate of $7.00. This current average has increased by 7.09% from the previous average price target of $7.05. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1722880868_0.png" alt="price target chart" /></p>
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
<p>The standing of Redwood Trust among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Crispin Love</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Neutral</td>
<td>$7.50</td>
<td>$6.50</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Raises</td>
<td>Buy</td>
<td>$7.55</td>
<td>$7.25</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$6.50</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Raises</td>
<td>Market Outperform</td>
<td>$8.50</td>
<td>$8.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$7.50</td>
<td>$7.00</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Announces</td>
<td>Buy</td>
<td>$7.25</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li><strong>Rating:</strong> Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li><strong>Price Targets:</strong> Gaining insights, analysts provide estimates for the future value of Redwood Trust's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>Capture valuable insights into Redwood Trust's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Redwood Trust analyst ratings.</strong></a></p>
<p>If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.</p>
<h2>About Redwood Trust</h2>
<p>Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.</p>
<h3>Unraveling the Financial Story of Redwood Trust</h3>
<p><strong>Market Capitalization Analysis:</strong> Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.</p>
<p><strong>Revenue Challenges:</strong> Redwood Trust's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately <strong>-15.59%</strong>. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.</p>
<p><strong>Net Margin:</strong> Redwood Trust's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>23.47%</strong> net margin, the company effectively manages costs and achieves strong profitability.</p>
<p><strong>Return on Equity (ROE):</strong> Redwood Trust's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>1.16%</strong> ROE, the company effectively utilizes shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of <strong>0.09%,</strong> the company showcases effective utilization of assets.</p>
<p><strong>Debt Management:</strong> With a high debt-to-equity ratio of <strong>12.26</strong>, Redwood Trust faces challenges in effectively managing its debt levels, indicating potential financial strain.</p>
<h2>Understanding the Relevance of Analyst Ratings</h2>
<p>Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.</p>
<p>Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Critical Insights From Redwood Trust Analyst Ratings: What You Need To Know

<p>Piper Sandler  analyst Crispin Love   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Neutral and raises the price target from $6.5 to $7.5.</p>


Piper Sandler Maintains Neutral on Redwood Trust, Raises Price Target to $7.5

<p>Jones Trading  analyst Jason Weaver   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Buy and raises the price target from $7.25 to $7.55.</p>


Jones Trading Maintains Buy on Redwood Trust, Raises Price Target to $7.55

<p>Wedbush  analyst Jay McCanless   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Neutral and raises the price target from $6.5 to $7.</p>


Wedbush Maintains Neutral on Redwood Trust, Raises Price Target to $7

<p>Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) reported quarterly earnings of $0.13 per share which met the analyst consensus estimate.</p>


Redwood Trust Q2 2024 GAAP EPS $0.13, Inline

<p>JMP Securities  analyst Steven Delaney   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Market Outperform and raises the price target from $8 to $8.5.</p>


JMP Securities Maintains Market Outperform on Redwood Trust, Raises Price Target to $8.5

<p>Throughout the last three months, 6 analysts have evaluated Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), offering a diverse set of opinions from bullish to bearish.</p>
<p>The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Insights from analysts' 12-month price targets are revealed, presenting an average target of $7.29, a high estimate of $8.00, and a low estimate of $6.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 1.22%. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1721149239_0.png" alt="price target chart" /></p>
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
<p>The standing of Redwood Trust among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$7.50</td>
<td>$7.00</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Announces</td>
<td>Buy</td>
<td>$7.25</td>
<td>-</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>$6.50</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>-</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$8.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li><strong>Rating:</strong> Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li><strong>Price Targets:</strong> Gaining insights, analysts provide estimates for the future value of Redwood Trust's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>For valuable insights into Redwood Trust's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Redwood Trust analyst ratings.</strong></a></p>
<p>If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.</p>
<h2>About Redwood Trust</h2>
<p>Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.</p>
<h3>Redwood Trust: A Financial Overview</h3>
<p><strong>Market Capitalization Perspectives:</strong> The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.</p>
<p><strong>Revenue Growth:</strong> Redwood Trust's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately <strong>62.92%</strong>. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.</p>
<p><strong>Net Margin:</strong> Redwood Trust's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>38.98%</strong> net margin, the company effectively manages costs and achieves strong profitability.</p>
<p><strong>Return on Equity (ROE):</strong> The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of <strong>2.37%,</strong> the company showcases effective utilization of equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> Redwood Trust's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>0.18%</strong> ROA, the company effectively utilizes its assets for optimal returns.</p>
<p><strong>Debt Management:</strong> Redwood Trust's debt-to-equity ratio is notably higher than the industry average. With a ratio of <b>11.56</b>, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.</p>
<h2>What Are Analyst Ratings?</h2>
<p>Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.</p>
<p>Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.</p>
<p>Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


<p>JP Morgan  analyst Richard Shane   maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Overweight and raises the price target from $7 to $7.5.</p>


JP Morgan Maintains Overweight on Redwood Trust, Raises Price Target to $7.5

<p>Redwood intends to use the net proceeds from the offering for general corporate purposes</p>


Offerings

Redwood Trust Reports Pricing Of Public Offering Of $85M Of Its 9.00% Senior Notes Due 2029

<p>In the last three months, 7 analysts have published ratings on Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), offering a diverse range of perspectives from bullish to bearish.</p>
<p>The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $7.36, a high estimate of $8.00, and a low estimate of $6.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.03%. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1718114421_0.png" alt="price target chart" /></p>
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
<p>The standing of Redwood Trust among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Announces</td>
<td>Buy</td>
<td>$7.25</td>
<td>-</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>-</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>-</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$7.25</td>
<td>$7.75</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Redwood Trust. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts gauge the dynamics of price targets, providing estimates for the future value of Redwood Trust's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>To gain a panoramic view of Redwood Trust's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Redwood Trust analyst ratings.</strong></a></p>
<p>If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.</p>
<h2>Delving into Redwood Trust's Background</h2>
<p>Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.</p>
<h3>Redwood Trust: A Financial Overview</h3>
<p><strong>Market Capitalization Perspectives:</strong> The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.</p>
<p><strong>Positive Revenue Trend:</strong> Examining Redwood Trust's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of <strong>62.92%</strong> as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.</p>
<p><strong>Net Margin:</strong> The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of <strong>38.98%,</strong> the company showcases strong profitability and effective cost control.</p>
<p><strong>Return on Equity (ROE):</strong> Redwood Trust's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>2.37%</strong> ROE, the company effectively utilizes shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of <strong>0.18%,</strong> the company showcases effective utilization of assets.</p>
<p><strong>Debt Management:</strong> Redwood Trust's debt-to-equity ratio stands notably higher than the industry average, reaching <strong>11.56</strong>. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.</p>
<h2>Analyst Ratings: Simplified</h2>
<p>Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.</p>
<p>Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.</p>
<p>Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.</p>
<p>If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


<p>Jones Trading  analyst Jason Weaver   initiates coverage on Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Buy rating and announces Price Target of $7.25.</p>


Initiation

Jones Trading Initiates Coverage On Redwood Trust with Buy Rating, Announces Price Target of $7.25

<p>Mortgage applications in the U.S. saw an increase of 1.9% for the week ending May 17, continuing an upward trend following a 0.5% rise the previous week. This marks the third consecutive week of growth in mortgage demand, according to data released Wednesday from the <a href="https://www.benzinga.com/money/best-mortgage-lenders">Mortgage Bankers Association (MBA).</a></p>
<p>The rise in applications aligns with a decrease in average mortgage rates, which reached a seven-week low due to expectations of lower inflation reducing long-dated Treasury yields.</p>
<p>The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased by 7 basis points to 7.01% during the week ending May 17, MBA data indicated. This decline, the third in a row, brought mortgage rates to their lowest level in over a month.</p>
<p>The yield on a 30-year Treasury bond, a critical indicator for mortgage rates, dropped by 8 basis points to 4.55% last week, following an inflation report for <a href="https://www.benzinga.com/general/macro-notification/24/05/38880563/disinflation-hopes-reshape-treasury-yields-major-trend-5-bond-etfs-poised-to-rally-on-">April that met expectations. </a></p>
<p>Refinancing applications, which are highly sensitive to changes in interest rates, surged by 7%, building on a 5% increase the previous week. This significant rise in refinancing applications compensated for a 1% decline in mortgage applications for home purchases, reflecting ongoing challenges such as limited housing supply and intense market competition.</p>
<p><em>Chart: 30-Year Mortgage Rates Slow In Tandem With 30-Year Treasury Yields</em></p>
<p><figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png" alt="" class="wp-image-349965" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></p>
<h3 class="wp-block-heading">Mortgage-Linked Stocks On The Rise</h3>
<p>The uptick in mortgage activity and the ease in mortgage rates have positively impacted stocks of mortgage-sensitive real estate firms in recent weeks. </p>
<p>The<strong> iShares Mortgage Real Estate ETF </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) is currently experiencing a five-week winning streak, its longest since January 2023.</p>
<p>Among the top-performing mortgage Real Estate Investment Trusts (REITs) over the past month are <strong>TPG RE Finance Trust, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTX#NYSE">TRTX</a>), <strong>Redwood Trust, Inc</strong>. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), <strong>Invesco Mortgage Capital Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVR#NYSE">IVR</a>), and <strong>Arbor Realty Trust, Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABR#NYSE">ABR</a>), with gains ranging from 12% to 16%.</p>
<p>Read now: <em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38950144/amc-bonds-hold-gains-after-meme-stock-selloff-is-it-a-better-bet-than-buying-shares">AMC Bonds Hold Gains After Meme Stock Selloff: Is It A Better Bet Than Buying Shares?</a></em></p>
<p><em>Image generated using artificial intelligence via Midjourney.</em></p>


<p>Ratings for Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) were provided by 11 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.</p>
<p>The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $7.5, a high estimate of $8.50, and a low estimate of $6.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 9.53%. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1714752064_0.png" alt="price target chart" /></p>
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
<p>A comprehensive examination of how financial experts perceive Redwood Trust is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>-</td>
</tr>
<tr>
<td>Jay McCanless</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$6.50</td>
<td>-</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$7.25</td>
<td>$7.75</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>-</td>
</tr>
<tr>
<td>Douglas Harter</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$8.50</td>
<td>$9.00</td>
</tr>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$7.75</td>
<td>$8.50</td>
</tr>
<tr>
<td>Donald Fandetti</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$7.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Steven Delaney</td>
<td>JMP Securities</td>
<td>Lowers</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$9.00</td>
</tr>
<tr>
<td>Kevin Barker</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$7.50</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li><strong>Rating:</strong> Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts gauge the dynamics of price targets, providing estimates for the future value of Redwood Trust's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>To gain a panoramic view of Redwood Trust's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Redwood Trust analyst ratings.</strong></a></p>
<p>If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.</p>
<h2>Discovering Redwood Trust: A Closer Look</h2>
<p>Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.</p>
<h3>Redwood Trust's Economic Impact: An Analysis</h3>
<p><strong>Market Capitalization Analysis:</strong> Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.</p>
<p><strong>Revenue Growth:</strong> Redwood Trust's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of <strong>14.16%</strong>. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.</p>
<p><strong>Net Margin:</strong> Redwood Trust's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of <strong>42.03%,</strong> the company showcases strong profitability and effective cost management.</p>
<p><strong>Return on Equity (ROE):</strong> Redwood Trust's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of <strong>2.46%,</strong> the company showcases efficient use of equity capital and strong financial health.</p>
<p><strong>Return on Assets (ROA):</strong> Redwood Trust's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of <strong>0.2%,</strong> the company showcases efficient use of assets and strong financial health.</p>
<p><strong>Debt Management:</strong> Redwood Trust's debt-to-equity ratio surpasses industry norms, standing at <strong>11.1</strong>. This suggests the company carries a substantial amount of debt, posing potential financial challenges.</p>
<h2>Analyst Ratings: What Are They?</h2>
<p>Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.</p>
<p>Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.</p>
<p>Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Peeling Back The Layers: Exploring Redwood Trust Through Analyst Insights

<p>Wedbush  analyst Jay McCanless   reiterates Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Neutral and maintains $6.5 price target.</p>


Reiteration

Wedbush Reiterates Neutral on Redwood Trust, Maintains $6.5 Price Target

<p><strong>Redwood Trust</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rwt#NYSE">RWT</a>) reported $24 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 7.7%. EPS of $0.08 for the same period compares to $0.11 a year ago.</p>
<p>The reported revenue compares to the Zacks Consensus Estimate of $22.51 million, representing a surprise of +6.62%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.08.</p>
<p>While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company&#39;s underlying performance.</p>
<p>Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock&#39;s price performance.</p>
<p>Here is how Redwood Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:</p>
<ul>
<li><strong>Net interest income</strong>: $24 million compared to the $23.19 million average estimate based on five analysts.</li>
<li><strong>Residential Consumer Mortgage Banking Activities, net</strong>: $8 million versus the five-analyst average estimate of $10.82 million.</li>
<li><strong>Residential Investor Mortgage Banking Activities, net</strong>: $7 million versus $10.62 million estimated by five analysts on average.</li>
<li><strong>Total non-interest income (loss), net</strong>: $50 million versus the five-analyst average estimate of $32.53 million.</li>
<li><strong>Other income, net</strong>: $5 million versus $3.55 million estimated by four analysts on average.</li>
<li><strong>Interest income</strong>: $205 million versus $207.64 million estimated by three analysts on average.</li>
<li><strong>Investment fair value changes, net</strong>: $22 million versus $5.58 million estimated by three analysts on average.</li>
</ul>
<p>Shares of Redwood Trust have returned -9.5% over the past month versus the Zacks S&amp;P 500 composite&#39;s -2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.</p>
<p><a href="https://www.zacks.com/stock/news/2265554/redwood-trust-rwt-reports-q1-earnings-what-key-metrics-have-to-say?cid=CS-BENZ-FT-fundamental_analysis|nfm-2265554">To read this article on Zacks.com click here.</a></p>


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