Redwood Trust found using ticker (RWT) have now 8 analysts covering the stock with the consensus suggesting a rating of ‘Buy’. The target price ranges between 13.5 and 8.5 with the average target price sitting at 10.75. Given that the stocks previous close was at 5.69 this indicates there is a potential upside of 88.9%. There is a 50 day moving average of 7.66 and the 200 moving average now moves to 9.64. The company has a market capitalisation of $670m. Company Website: https://www.redwoodtrust.com
The potential market cap would be $1,266m based on the market concensus.
Redwood Trust, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Business Purpose Mortgage Banking segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential and business purpose securitization activities, and residential and small-balance multifamily bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Redwood Trust was incorporated in 1994 and is headquartered in Mill Valley, California.
