Redwood Trust Inc. (NYSE: RWT)’s stock price has plunge by 3.03relation to previous closing price of 6.27. Nevertheless, the company has seen a 1.57% surge in its stock price over the last five trading sessions. 24/7 Wall Street reported 2024-05-05 that ∴ Sponsored: Want to Retire Early?
Is It Worth Investing in Redwood Trust Inc. (NYSE: RWT) Right Now?
Redwood Trust Inc. (NYSE: RWT) has a price-to-earnings ratio that is above its average at 96.13x. The stock has a 36-month beta value of 1.59. Opinions on the stock are mixed, with 1 analysts rating it as a “buy,” 0 as “overweight,” 2 as “hold,” and 0 as “sell.”
The public float for RWT is 130.02M, and at present, short sellers hold a 5.83% of that float. On May 10, 2024, the average trading volume of RWT was 1.59M shares.
RWT’s Market Performance
RWT stock saw an increase of 1.57% in the past week, with a monthly gain of 8.57% and a quarterly increase of -0.46%. The volatility ratio for the week is 2.83%, and the volatility levels for the last 30 days are 2.95% for Redwood Trust Inc. (RWT). The simple moving average for the last 20 days is 10.19% for RWT stock, with a simple moving average of -5.84% for the last 200 days.
Analysts’ Opinion of RWT
UBS, on the other hand, stated in their research note that they expect to see RWT reach a price target of $9. The rating they have provided for RWT stocks is “Buy” according to the report published on December 06th, 2023.
BTIG Research gave a rating of “Buy” to RWT, setting the target price at $8.50 in the report published on December 05th of the previous year.
RWT Trading at 6.96% 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 -22.17% of loss for the given period.
Volatility was left at 2.95%, however, over the last 30 days, the volatility rate increased by 2.83%, as shares surge +10.81% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.78% upper at present.
During the last 5 trading sessions, RWT rose by +1.57%, which changed the moving average for the period of 200-days by -5.56% in comparison to the 20-day moving average, which settled at $5.89. In addition, Redwood Trust Inc. saw -12.82% 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 1.64, with 0.14 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 45.25. The receivables turnover for the company is 1.74for trailing twelve months and the total asset turnover is 0.02.
Conclusion
To sum up, Redwood Trust Inc. (RWT) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing 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.
