Why Redwood Trust's Stock Is Trading Higher Today

Redwood Trust, Inc. RWT shares are trading higher on Tuesday, after Raymond James maintained an Outperform rating on the stock and raised its target price from $5.50 to $7.

Redwood Trust is a real estate investment trust that focuses on residential mortgage loans and mortgage-backed securities. The company operates through two segments: Mortgage Banking and Investment Portfolio. The investments in residential mortgage loans are generally made through a Sequoia securitization entity or the sale of the loans to third parties.

Redwood Trust shares were trading up 7.66% at $5.48 on Tuesday. The stock has a 52-week high of $18.01 and a 52-week low of $2.14.