Is Redwood Trust Stock a Good Investment?
Redwood Trust Investment Advice | RWT |
- Examine Redwood Trust's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Redwood Trust's leadership team and their track record. Good management can help Redwood Trust navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Mortgage Real Estate Investment Trusts (REITs) space and any emerging trends that could impact Redwood Trust's business and its evolving consumer preferences.
- Compare Redwood Trust's performance and market position to its competitors. Analyze how Redwood Trust is positioned in terms of product offerings, innovation, and market share.
- Check if Redwood Trust pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Redwood Trust's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Redwood Trust stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Redwood Trust is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Redwood Trust Stock
Researching Redwood Trust's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.82. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Redwood Trust has Price/Earnings To Growth (PEG) ratio of 1.39. The entity last dividend was issued on the 23rd of September 2024.
To determine if Redwood Trust is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Redwood Trust's research are outlined below:
| Redwood Trust generated a negative expected return over the last 90 days | |
| Redwood Trust has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the last year's revenue of 158.3 M. Reported Net Loss for the year was (6.27 M) with loss before taxes, overhead, and interest of (27.55 M). | |
| Redwood Trust has about 258.89 M in cash with (2.02 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.64. | |
| Over 81.0% of the company shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Acquisition by Douglas Hansen of 28517 shares of Redwood Trust subject to Rule 16b-3 |
Redwood Trust uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Redwood Trust. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Redwood Trust's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Redwood Trust's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Redwood Trust's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-04-30 | 2024-03-31 | 0.09 | 0.08 | -0.01 | 11 | ||
2023-07-27 | 2023-06-30 | 0.12 | 0.14 | 0.02 | 16 | ||
2010-11-03 | 2010-09-30 | 0.28 | 0.25 | -0.03 | 10 | ||
2024-10-30 | 2024-09-30 | 0.14 | 0.18 | 0.04 | 28 | ||
2022-02-09 | 2021-12-31 | 0.38 | 0.34 | -0.04 | 10 | ||
2017-11-06 | 2017-09-30 | 0.39 | 0.35 | -0.04 | 10 | ||
2015-02-23 | 2014-12-31 | 0.35 | 0.31 | -0.04 | 11 | ||
2010-08-04 | 2010-06-30 | 0.39 | 0.35 | -0.04 | 10 |
Know Redwood Trust's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Redwood Trust is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Redwood Trust backward and forwards among themselves. Redwood Trust's institutional investor refers to the entity that pools money to purchase Redwood Trust's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Charles Schwab Investment Management Inc | 2024-09-30 | 1.6 M | Mirae Asset Global Etfs Holdings Ltd. | 2024-06-30 | 1.5 M | Northern Trust Corp | 2024-09-30 | 1.4 M | Evergreen Capital Management Llc | 2024-09-30 | 1.2 M | Ceredex Value Advisors Llc | 2024-09-30 | 1.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 1 M | Kennedy Capital Management Inc | 2024-09-30 | 1 M | Raymond James & Associates | 2024-09-30 | 995.5 K | Van Eck Associates Corporation | 2024-06-30 | 976.3 K | Blackrock Inc | 2024-06-30 | 22.2 M | Vanguard Group Inc | 2024-09-30 | 14.8 M |
Redwood Trust's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 947.03 M.Market Cap |
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Redwood Trust's profitablity analysis
| Last Reported | Projected for Next Year |
Determining Redwood Trust's profitability involves analyzing its financial statements and using various financial metrics to determine if Redwood Trust is a good buy. For example, gross profit margin measures Redwood Trust's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Redwood Trust's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Redwood Trust's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Redwood Trust. Check Redwood Trust's Beneish M Score to see the likelihood of Redwood Trust's management manipulating its earnings.
Evaluate Redwood Trust's management efficiency
Return On Tangible Assets is likely to gain to -0.0004 in 2024. Return On Capital Employed is likely to drop to 0.000078 in 2024. Liabilities And Stockholders Equity is likely to drop to about 8.9 B in 2024. Total Current Liabilities is likely to drop to about 1.2 B in 2024Redwood Trust's management efficiency ratios could be used to measure how well Redwood Trust manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 10.34 | 9.83 | |
| Tangible Book Value Per Share | 9.90 | 9.40 | |
| Enterprise Value Over EBITDA | 36.70 | 35.51 | |
| Price Book Value Ratio | 0.72 | 0.77 | |
| Enterprise Value Multiple | 36.70 | 35.51 | |
| Price Fair Value | 0.72 | 0.77 | |
| Enterprise Value | 13.4 B | 7 B |
Effective management at Redwood Trust has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield 0.0946 | Forward Dividend Yield 0.0946 | Forward Dividend Rate 0.68 | Beta 1.63 |
Basic technical analysis of Redwood Stock
As of the 30th of November, Redwood Trust holds the Coefficient Of Variation of (10,484), variance of 2.23, and insignificant Risk Adjusted Performance. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Redwood Trust, as well as the relationship between them.Redwood Trust's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Redwood Trust insiders, such as employees or executives, is commonly permitted as long as it does not rely on Redwood Trust's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Redwood Trust insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Redwood Trust's Outstanding Corporate Bonds
Redwood Trust issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Redwood Trust uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Redwood bonds can be classified according to their maturity, which is the date when Redwood Trust has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Redwood Trust's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Redwood Trust's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.11 | |||
| Coefficient Of Variation | (10,484) | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.23 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 10.13 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.37 | |||
| Skewness | 0.6475 | |||
| Kurtosis | 3.28 |
| Risk Adjusted Performance | (0) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.11 | |||
| Coefficient Of Variation | (10,484) | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.23 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 10.13 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.37 | |||
| Skewness | 0.6475 | |||
| Kurtosis | 3.28 |
Consider Redwood Trust's intraday indicators
Redwood Trust intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Redwood Trust stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Redwood Trust Corporate Filings
F4 | 22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 30th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 8th of August 2024 Other Reports | ViewVerify |
Redwood Stock media impact
Far too much social signal, news, headlines, and media speculation about Redwood Trust that are available to investors today. That information is available publicly through Redwood media outlets and privately through word of mouth or via Redwood internal channels. However, regardless of the origin, that massive amount of Redwood data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Redwood Trust news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Redwood Trust relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Redwood Trust's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Redwood Trust alpha.
Redwood Trust Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Redwood Trust can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Redwood Trust Corporate Directors
| Georganne Proctor | Independent Director | Profile | |
| Deborah Horvath | Independent Director | Profile | |
| Jeffrey Pero | Independent Director | Profile | |
| Garnet Kanouse | Managing Director - Head of Residential business | Profile |
Additional Tools for Redwood Stock Analysis
When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.