4 Analysts Assess Redwood Trust: What You Need To Know

Ratings for Redwood Trust RWT were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for Redwood Trust, revealing an average target of $7.38, a high estimate of $8.00, and a low estimate of $6.50. Observing a downward trend, the current average is 7.75% lower than the prior average price target of $8.00.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Redwood Trust. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: 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.
• Rating: 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.
• Price Targets: Understanding forecasts, analysts offer estimates for Redwood Trust's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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.

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All You Need to Know About 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.

Redwood Trust: Delving into Financials

Market Capitalization Analysis: 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.

Revenue Growth: Redwood Trust displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 1053.95%. This indicates a notable 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.

Net Margin: Redwood Trust's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 21.72%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Redwood Trust's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.13%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Redwood Trust's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.07%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Redwood Trust's debt-to-equity ratio surpasses industry norms, standing at 14.56. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.