Redwood Trust Inc. (RWT): A Technical Analysis

RWT has 36-month beta value of 1.52. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 2 as “hold,” and 0 as “sell.”

The public float for RWT is 130.25M, and currently, short sellers hold a 3.73% ratio of that float. The average trading volume of RWT on April 03, 2024 was 1.53M shares.

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RWT) stock’s latest price update

The stock of Redwood Trust Inc. (NYSE: RWT) has decreased by -2.23 when compared to last closing price of 6.29.Despite this, the company has seen a loss of -2.84% in its stock price over the last five trading days. Zacks Investment Research reported 2024-03-21 that In efforts to scale its mortgage banking businesses, Redwood (RWT) announces a $750-million strategic capital partnership with CPP Investments.

RWT’s Market Performance

Redwood Trust Inc. (RWT) has seen a -2.84% fall in stock performance for the week, with a 0.16% gain in the past month and a -17.00% plunge in the past quarter. The volatility ratio for the week is 3.62%, and the volatility levels for the past 30 days are at 2.88% for RWT.. The simple moving average for the past 20 days is -0.23% for RWT’s stock, with a -11.29% simple moving average for the past 200 days.

Analysts’ Opinion of RWT

Many brokerage firms have already submitted their reports for RWT stocks, with UBS repeating the rating for RWT by listing it as a “Buy.” The predicted price for RWT in the upcoming period, according to UBS is $9 based on the research report published on December 06, 2023 of the previous year 2023.

BTIG Research, on the other hand, stated in their research note that they expect to see RWT reach a price target of $8.50. The rating they have provided for RWT stocks is “Buy” according to the report published on December 05th, 2023.

Piper Sandler gave a rating of “Neutral” to RWT, setting the target price at $7 in the report published on June 15th of the previous year.

RWT Trading at -4.03% from the 50-Day Moving Average

After a stumble in the market that brought RWT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.90% of loss for the given period.

Volatility was left at 2.88%, however, over the last 30 days, the volatility rate increased by 3.62%, as shares surge +1.99% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.38% lower at present.

During the last 5 trading sessions, RWT fell by -2.84%, which changed the moving average for the period of 200-days by -5.24% in comparison to the 20-day moving average, which settled at $6.17. In addition, Redwood Trust Inc. saw -17.00% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for RWT

Current profitability levels for the company are sitting at:

  • 1.06 for the present operating margin
  • 0.86 for the gross margin

The net margin for Redwood Trust Inc. stands at -0.01. The total capital return value is set at 0.02. Equity return is now at value -0.55, with -0.05 for asset returns.

Based on Redwood Trust Inc. (RWT), the company’s capital structure generated 0.92 points at debt to capital in total, while cash flow to debt ratio is standing at -0.15. The debt to equity ratio resting at 10.86. The interest coverage ratio of the stock is 0.5.

Currently, EBITDA for the company is 658.16 million with net debt to EBITDA at 39.12. When we switch over and look at the enterprise to sales, we see a ratio of 45.12. The receivables turnover for the company is 1.74for trailing twelve months and the total asset turnover is 0.02.

Conclusion

To put it simply, Redwood Trust Inc. (RWT) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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