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How to buy Redwood Trust stock
Learn how to easily invest in Redwood Trust stock.
Redwood Trust Inc is a reit-mortgage business based in the US. Redwood Trust shares (RWT) are listed on the NYSE and all prices are listed in US Dollars. Redwood Trust employs 298 staff and has a trailing 12-month revenue of around $241.5 million.
How to buy shares in Redwood Trust
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – RWT – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
Redwood Trust stock price (NYSE: RWT)Use our graph to track the performance of RWT stocks over time.
Redwood Trust shares at a glance
|Latest market close||$5.90|
|52-week range||$6.16 - $12.77|
|50-day moving average||$7.89|
|200-day moving average||$9.83|
|Wall St. target price||$10.75|
|Dividend yield||$0.9 (14.13%)|
|Earnings per share (TTM)||$0.39|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Is it a good time to buy Redwood Trust stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Redwood Trust price performance over time
|1 week (2022-09-21)||-16.43%|
|1 month (2022-08-24)||-27.61%|
|3 months (2022-06-28)||-23.48%|
|6 months (2022-03-24)||N/A|
|1 year (2021-09-28)||-53.69%|
|2 years (2020-09-28)||-23.28%|
|3 years (2019-09-27)||16.48|
|5 years (2017-09-27)||16.37|
Is Redwood Trust stock undervalued or overvalued?
Valuing Redwood Trust stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Redwood Trust's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Redwood Trust's P/E ratio
Redwood Trust's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 17x. In other words, Redwood Trust shares trade at around 17x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Redwood Trust's PEG ratio
Redwood Trust's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.39. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Redwood Trust's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Redwood Trust financials
|Revenue TTM||$241.5 million|
|Operating margin TTM||21.95%|
|Gross profit TTM||$528.8 million|
|Return on assets TTM||0.49%|
|Return on equity TTM||4.96%|
|Market capitalisation||$760.1 million|
TTM: trailing 12 months
Redwood Trust share dividends
Dividend payout ratio: 2.42% of net profits
Recently Redwood Trust has paid out, on average, around 2.42% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 14.13% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Redwood Trust shareholders could enjoy a 14.13% return on their shares, in the form of dividend payments. In Redwood Trust's case, that would currently equate to about $0.9 per share.
While Redwood Trust's payout ratio might seem low, this can signify that Redwood Trust is investing more in its future growth.
Redwood Trust's most recent dividend payout was on 29 September 2022. The latest dividend was paid out to all shareholders who bought their shares by 21 September 2022 (the "ex-dividend date").
Redwood Trust share price volatility
Over the last 12 months, Redwood Trust's shares have ranged in value from as little as $6.1562 up to $12.7741. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Redwood Trust's is 1.1155. This would suggest that Redwood Trust's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Redwood Trust overview
Redwood Trust, Inc. , together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Business Purpose Mortgage Banking segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential and business purpose securitization activities, and residential and small-balance multifamily bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments.
Redwood Trust in the news
Redwood Trust Announces Dividend of $0.23 Per Share for the Third Quarter of 2022
Frequently asked questionsWhat percentage of Redwood Trust is owned by insiders or institutions?
Currently 0.952% of Redwood Trust shares are held by insiders and 74.78% by institutions. How many people work for Redwood Trust?
Latest data suggests 298 work at Redwood Trust. When does the fiscal year end for Redwood Trust?
Redwood Trust's fiscal year ends in December. Where is Redwood Trust based?
Redwood Trust's address is: One Belvedere Place, Mill Valley, CA, United States, 94941 What is Redwood Trust's ISIN number?
Redwood Trust's international securities identification number is: US7580754023 What is Redwood Trust's CUSIP number?
Redwood Trust's Committee on Uniform Securities Identification Procedures number is: 758075402
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