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Redwood Trust Inc

RWT | US

5.09

USD

-0.24

-4.50%

RWT | US
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About Redwood Trust Inc

Sector

Real Estate

Industry

REIT-Diversified

Earnings date

30/06/2024

As of date

08/06/2026

Close

5.09

Open

5.33

High

5.35

Low

5.07

Redwood Trust Inc. together with its subsidiaries operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking Business Purpose Mortgage Banking and Investment Portfolio. The Residential Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale securitization or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Business Purpose Mortgage Banking segment operates a platform that originates and acquires business purpose loans such as single-family rental and bridge loans for subsequent securitization sale or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential and business purpose securitization activities and residential and small-balance multifamily bridge loans as well as residential mortgage-backed securities issued by third parties Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations servicer advance investments home equity investments and other housing-related investments. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT it intends to distribute at least 90% of its taxable income as dividends to shareholders. Redwood Trust Inc. was incorporated in 1994 and is headquartered in Mill Valley California.

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RWT | US

Risk
28.4
Sharpe
-0.03
Luna's Score
40/100
Recommendation
Sell

Luna says (RWT | US)

What's Working

Value Stock (Price to Book < 3)

Strong Operating Margin (> 25%)

Strong Revenue Growth (> 10%)

What's not Working

Negative Momentum (Declining Price)

Weakness based on declining price with high volume

Price Below SMA10D

High Short-term Volatility

Smallcap (300M - 2B USD)

High Market Beta (> 0.8)

High Debt to Equity (> 0.75)

High Debt to Asset (> 0.45)

Weak Sharpe Ratio (< 0.3)

Volatility Signals

Bearish: Increased Volatility (6-month > 1-month volatility)

Risk Meter

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10 days

32.5%

1 month

28.4%

3 months

32.0%

6 months

42.8%

Returns

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Fundamental Ratios

PE

42.67

Fwd. PE

8.86

Price to book

0.88

Debt to equity

12.28

Debt to assets

0.91

Ent. to EBITDA

-

Ent. to rev.

83.13

PEG

1.39

Other Fundamentals

EBITDA

-

MarketCap

672.98M

MarketCap(USD)

672.98M

Div. yield

8.85

Op. margin

30.33

Erngs. growth

4.54K

Rev. growth

55.90

Ret. on equity

3.07

Short ratio

6.19

Short perc.

4.72

Market Sentiment (SMA and Price signals)

Short-term: Bullish (SMA10D > SMA1M)

Intermediate-term: Bearish (SMA1M < SMA3M)

Long-term: Bullish (SMA6M > SMA12M)

SMAs: Stock Price Trends

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Range10D

0.36

Range1M

0.50

Range3M

1.09

Volumes: Market Activity

Volume Averages

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Rel. volume

1.72

Price X volume

8.46M

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  • 1

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  • 1

Industry Comparison

ParameterCompanyIndustryIndicator
Enterprise to EBITDA-76.38-
Ent. to Revenue83.1326.25Expensive
PE Ratio42.6738.38Par
Price to Book0.886.57Cheaper
Dividend Yield8.858.36Par
Std. Deviation (3M)32.0128.87Par
Debt to Equity12.28-12.44Expensive
Debt to Assets0.910.62Expensive
Market Cap672.98M5.34BEmerging
  • 1

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