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.

RWT was given price targets by several analysts. The highest price target was 18.5, implying potential capital gains of 7.62 percent. The minimum price target given was 17, implying a possible loss of -1.11 percent. Note that investment analysts can be biased in their reporting on companies's ratings and price targets.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -2.78 percent. That number becomes -0.08 percent if we expand the time horizon to include the past 3 months instead of just one. 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, which can be compared to the 1 analysts that decreased their estimates. Over the same time period, 0 analysts revised their FY earnings estimates upwards, while 1 analysts decreased their estimates.

RWT has an estimated earnings growth rate of -22.7 percent as forecasted by analysts. Another measure frequently examined by investors is the PEG ratio. Investors like to see smaller values for the PEG ratio, because that is often interpreted as the company being fairly priced relative to its growth rate. Wall Street investors typically prefer a PEG ratio to be smaller than 1, but many choose to perform ratio comparisons with other companies in the industry. The PEG ratio of RWT is -0.42.

RWT has a 52-week high of 17.43 and a 52-week low of 13.22. 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 P/E 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 market cap of RWT is $1.33 billion. RWT's next earnings release will be on 0000-00-00, which is days away.