Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Thursday, JMP analysts revised the price target for Redwood Trust (NYSE:RWT) shares, reducing it from $8.00 to $7.50, while maintaining a Market Outperform rating. The change in price target reflects a valuation of 0.89 times the last reported GAAP book value, a slight decrease from the previous target price-to-book value (P/BV) ratio of 0.95 times. According to InvestingPro data, the stock currently trades at a P/B ratio of 0.63, suggesting potential value for investors. The company stands out with its impressive 13.56% dividend yield and a 31-year track record of consistent dividend payments.
The analysts at JMP provided commentary alongside the price target adjustment. "We lower our price target on shares of Redwood Trust, Inc. (RWT) to $7.50 from $8.00," they noted, indicating a recalibration of the expected share value based on the company’s financial book value.
Redwood Trust, a real estate investment trust (REIT) known for investing in mortgages and other real estate-related assets, has been under the scrutiny of market analysts who evaluate the company’s performance and potential value to investors.
The maintenance of the Market Outperform rating suggests that JMP analysts still view Redwood Trust favorably in terms of its market performance potential, despite the lowered price target. The Market Outperform rating implies that the analysts expect the company’s stock to perform better than the average return of the market over the next 12 to 18 months.
Investors and market watchers often look to such analyst ratings and price target changes as indicators of a stock’s future performance, although such predictions are not guarantees of actual outcomes. The new price target of $7.50 set by JMP for Redwood Trust now stands as the current expectation for the company’s share value, based on the latest available financial data.
In other recent news, Redwood Trust has made several notable announcements that are drawing attention from investors. Raymond (NSE:RYMD) James has reiterated its Strong Buy rating on Redwood Trust, maintaining a price target of $9.50. This decision follows a detailed analysis of the company’s fourth-quarter results, with a focus on anticipated reductions in non-interest income and potential growth in Earnings Assets under Development. Additionally, Redwood Trust has filed a shelf registration statement with the SEC and announced a Direct Stock Purchase and Dividend Reinvestment Plan, allowing shareholders and new investors to buy shares directly from the company. This initiative aims to increase the liquidity and accessibility of Redwood Trust’s shares.
Furthermore, JMP Securities has maintained its Market Outperform rating on Redwood Trust, with a price target of $8.00. Analysts from JMP Securities have kept their earnings per share estimates for 2024 and 2025 unchanged, though they adjusted their projection for the fourth quarter of 2024. The revised estimate for the fourth quarter is $0.16 per share, slightly below both the previous estimate and the Street consensus. These developments indicate a focus on Redwood Trust’s earnings potential and strategic positioning in the market, as investors continue to monitor the company’s performance and financial activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.