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At Redwood Trust Inc. (NYSE:RWT), Share Price Got a Bit Ahead of the Fundamentals

Redwood Trust Inc. (NYSE:RWT) previous close was $12.38 while the outstanding shares total 112.28M. The firm has a beta of 0.99, a 12-month trailing P/E ratio of 3.52. RWT’s shares traded lower over the last trading session, losing -0.32% on 06/21/21. The shares fell to a low of $12.22 before closing at $12.34. Intraday shares traded counted 1.5 million, which was -50.41% lower than its 30-day average trading volume of 1.00M. The stock’s Relative Strength Index (RSI) is 69.43, with weekly volatility at 3.20% and ATR at 0.31. The RWT stock’s 52-week price range has touched low of $5.93 and a $12.71 high.

Investors have identified the REIT – Mortgage company Redwood Trust Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.39 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Potential earnings growth for Redwood Trust Inc. (RWT)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Redwood Trust Inc. recorded a total of 128.31 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -54.38% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 4.99%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 143.39 million trying to sell their products during the last quarter, with the result yielding a gross income of -15.08 million. This allows shareholders to hold on to 112.28M with the recently reported earning now reading 0.84 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.40 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.11 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RWT sounds very interesting.

Is the stock of RWT attractive?

In related news, Director, PROCTOR GEORGANNE sold 8,645 shares of the company’s stock in a transaction that recorded on Mar 03. The sale was performed at an average price of 10.04, for a total value of 86,796. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.

6 out of 7 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Redwood Trust Inc.. 0 analysts has assigned a Sell rating on the RWT stock. The 12-month mean consensus price target for the company’s shares has been set at $13.00.

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