Analyst Ratings for Redwood Trust Inc. (RWT)

Updated: 2017-07-27

Redwood Trust Inc. (NYSE:RWT) was awarded an average rating of Overweight from investment analysts following the stock. RWT had previously received a consensus rating of Hold a month ago.

Of the 4 analysts covering the stock, 1 gave it a buy rating, 0 gave an overweight rating, 3 gave a hold rating, 0 issued an underweight rating, and 0 issued a sell rating. Today, there are 0 more analysts optimistic about the company future as compared with 90 days ago. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

A number of analysts gave price targets for RWT. The most optimistic price target was 18.5, which equates to a potential upside of 7.62 percent. The minimum price target given was 17, which equates to a potential downside of -1.11 percent. Some investors take price targets and stock ratings with a grain of salt, knowing that some analysts can have indirect business with the stocks they cover.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -2.78 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -0.08 percent. On the other hand, earnings estimates for the fiscal year have been revised downwards by -1.39 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes -1.04 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 0 analysts increased their quarterly estimates, while 1 analysts revised their estimates downwards. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, while 1 analysts decreased their estimates.

Analysts estimate earnings of RWT to grow at a rate of -22.7 percent. Another measure frequently examined by investors is the PEG ratio. Smaller PEG ratios are desirable, because that is often interpreted as the company being fairly priced relative to its growth rate. People often look for the PEG ratio to be under 1, although it is frequently more appropriate to compare PEG ratios to the company's peers. RWT has a PEG ratio of -0.42.

RWT has traded between a high of 17.43 and a low of 13.22 over the past year. The current market price is above the trailing year's low by 30.03 percent, and 1.38 percent lower than its 52-week high. RWT has a price/earnings ratio of 9.5. Investors typically compare the P/E ratio to a company's peers in the industry. The RWT value stock report compares RWT to some of its peers using value stock charts. The stock has a market capitalization of $1.33 billion. RWT's next earnings release will be on 0000-00-00, which is days away.