On March 24, 2023 at 15:11:42 ET an unusually large
$40.74K block of Put contracts in Redwood Trust
(RWT) was bought,
with a strike price of $5.00 / share, expiring in 266 days (on December 15, 2023).
Fintel tracks all large options trades, and the premium spent on this trade was 1.04 sigmas above the mean, placing it in the 87.87 percentile of all recent large trades made in RWT options.
This trade was first picked up on Fintel’s real time Unusual Option Trades
tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 61.64% Upside
As of March 24, 2023,
the average one-year price target for Redwood Trust is $9.86.
The forecasts range from a low of $8.58 to a high of $13.65.
The average price target represents an increase of 61.64% from its latest reported closing price of $6.10.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Redwood Trust
is $159MM.
The projected annual non-GAAP EPS
is $0.92.
What is the Fund Sentiment?
There are 441 funds or institutions reporting positions in Redwood Trust.
This is a decrease
of
4
owner(s) or 0.90% in the last quarter.
Average portfolio weight of all funds dedicated to RWT is 0.10%,
a decrease
of 2.05%.
Total shares owned by institutions increased
in the last three months by 2.18% to 99,179K shares.
The put/call ratio of RWT is 2.84, indicating a
bearish
outlook.
What are Large Shareholders Doing?
IJR – iShares Core S&P Small-Cap ETF
holds 8,400K shares
representing 7.40% ownership of the company.
In it’s prior filing, the firm reported owning 8,548K shares, representing
a decrease
of 1.76%.
The firm
increased
its portfolio allocation in RWT by 5.29% over the last quarter.
Adage Capital Partners Gp, L.l.c.
holds 4,395K shares
representing 3.87% ownership of the company.
In it’s prior filing, the firm reported owning 3,448K shares, representing
an increase
of 21.56%.
The firm
increased
its portfolio allocation in RWT by 44.80% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares
holds 3,332K shares
representing 2.93% ownership of the company.
In it’s prior filing, the firm reported owning 3,321K shares, representing
an increase
of 0.32%.
The firm
increased
its portfolio allocation in RWT by 9.11% over the last quarter.
NAESX – Vanguard Small-Cap Index Fund Investor Shares
holds 2,920K shares
representing 2.57% ownership of the company.
In it’s prior filing, the firm reported owning 2,966K shares, representing
a decrease
of 1.56%.
The firm
increased
its portfolio allocation in RWT by 7.35% over the last quarter.
IWM – iShares Russell 2000 ETF
holds 2,626K shares
representing 2.31% ownership of the company.
In it’s prior filing, the firm reported owning 2,553K shares, representing
an increase
of 2.78%.
The firm
increased
its portfolio allocation in RWT by 9.70% over the last quarter.
Redwood Trust Declares $0.23 Dividend
On March 14, 2023 the company declared a regular
quarterly dividend of $0.23 per share ($0.92 annualized).
Shareholders of record as of March 24, 2023
will receive the payment on March 31, 2023.
Previously, the company paid $0.23 per share.
At the current share price of $6.10 / share,
the stock’s dividend yield is 15.08%.
Looking back five years and taking a sample every week, the average dividend yield has been
10.16%,
the lowest has been 5.51%,
and the highest has been 46.21%.
The standard deviation of yields is 6.08 (n=237).
The current dividend yield is
0.81 standard deviations
above
the historical average.
Additionally, the company’s dividend payout ratio is -0.64.
The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0)
means 100% of the company’s income is paid in a dividend.
A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a
healthy situation.
Companies with few growth prospects are expected to pay out most of their income in dividends, which typically
means a payout ratio between 0.5 and 1.0.
Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is -0.28%.
Redwood Trust Background Information
(This description is provided by the company.)
Redwood Trust, Inc. is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. The Compoany delivers customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and its publicly-traded shares. Its consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Redwood Trust goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, Redwood Trust has managed its business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust (‘REIT’) for tax purposes.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
