Redwood Trust expands stock repurchase program to $150 million

MILL VALLEY, Calif. - Redwood Trust, Inc. (NYSE:RWT), currently trading at $6.07 with a market capitalization of $808 million, announced Wednesday that its Board of Directors has increased the company’s common stock repurchase authorization to $150 million, up from its previous limit. According to InvestingPro data, the company maintains a strong financial position with liquid assets exceeding short-term obligations.

The expanded authorization has no time limit and can be modified or suspended at any time, according to the company’s statement. The board also maintained its previous authorization for repurchasing outstanding preferred stock and corporate debt securities.

Christopher Abate, Chief Executive Officer of Redwood, said the increased repurchase capacity reflects the company’s "strong conviction" in its intrinsic value, operating platforms, and strategic positioning. The company began repurchasing common stock in the second quarter of 2025. This move comes as the company maintains its impressive 31-year streak of consecutive dividend payments, currently offering shareholders a substantial 11.86% dividend yield.

The timing and amount of stock repurchases will depend on various factors, including the company’s capital position, liquidity, financial performance, and market conditions. Repurchases may be conducted through open market purchases or privately negotiated transactions.

Redwood Trust describes itself as a specialty finance company focused on housing credit segments not well served by government programs. The company operates through three residential housing platforms – Sequoia, Aspire, and CoreVest – alongside its Redwood Investments portfolio.

The announcement was made in a press release statement issued by the company.

In other recent news, Redwood Trust Inc. reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.14, which aligns with market expectations. This performance marks an improvement from the previous quarter’s loss, indicating a positive shift in the company’s financial health. Additionally, Redwood Trust held its 2025 Annual Meeting of Stockholders, where shareholders elected nine directors to the board for a one-year term. The directors elected include Greg H. Kubicek, Christopher J. Abate, and others, with votes ranging from 86,575,637 to 89,133,559. This meeting also resulted in the ratification of the company’s auditor, reflecting shareholder confidence in Redwood Trust’s governance. These developments provide insight into the company’s current operational and financial strategies.

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