Redwood Trust Inc (NYSE: RWT) has seen a decline in its stock price by -0.14 in relation to its previous close of 7.05. However, the company has experienced a -1.95% decline in its stock price over the last five trading sessions. zacks.com reported 2024-11-08 that Redwood Trust (RWT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Is It Worth Investing in Redwood Trust Inc (NYSE: RWT) Right Now?
Redwood Trust Inc (NYSE: RWT) has a higher price-to-earnings ratio of 13.00x compared to its average ratio, The 36-month beta value for RWT is at 1.61. Analysts have varying views on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 2 as “hold,” and 0 as “sell.”
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The public float for RWT is 130.66M, and currently, shorts hold a 3.61% of that float. The average trading volume for RWT on November 15, 2024 was 791.83K shares.
RWT’s Market Performance
RWT’s stock has seen a -1.95% decrease for the week, with a -8.57% drop in the past month and a -1.68% fall in the past quarter. The volatility ratio for the week is 2.29%, and the volatility levels for the past 30 days are at 2.61% for Redwood Trust Inc The simple moving average for the last 20 days is -4.28% for RWT stock, with a simple moving average of 3.89% 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 -6.64% 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 -13.62% of loss for the given period.
Volatility was left at 2.61%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares sank -8.09% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.99% lower at present.
During the last 5 trading sessions, RWT fell by -1.95%, which changed the moving average for the period of 200-days by +4.92% in comparison to the 20-day moving average, which settled at $7.35. In addition, Redwood Trust Inc saw -4.99% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RWT starting from Carillo Brooke, who purchase 15,000 shares at the price of $6.25 back on May 30 ’24. After this action, Carillo Brooke now owns 56,772 shares of Redwood Trust Inc, valued at $93,720 using the latest closing price.
Stock Fundamentals for RWT
Current profitability levels for the company are sitting at:
- 0.88 for the present operating margin
- 0.95 for the gross margin
The net margin for Redwood Trust Inc stands at 0.11. The total capital return value is set at 0.04. Equity return is now at value 6.64, with 0.49 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 -0.37. The debt to equity ratio resting at 11.02. The interest coverage ratio of the stock is 1.18.
Currently, EBITDA for the company is 645.73 million with net debt to EBITDA at 21.96. When we switch over and look at the enterprise to sales, we see a ratio of 21.2. The receivables turnover for the company is 4.48for trailing twelve months and the total asset turnover is 0.04.
Conclusion
In conclusion, Redwood Trust Inc (RWT) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others 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.
