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 analyst gave a price target of 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. It is advisable to not rely only on price targets or ratings, as these can be biased for some stocks.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -2.78 percent. The average change in earnings estimates over the last 90 days 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. If we look at the last 90 days instead, we find a net average change of -1.04 percent in FY estimates.

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. Also over the last month, 0 analysts increased their estimates for the FY earnings, compared to 1 analysts that revised their FY estimates downwards.

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 people typically see that as an indicator of higher growth relative to stock price. People often look for the PEG ratio to be under 1, even though it may be more relevant to compare the ratio to that of a firm's competitors. RWT has a PEG ratio of -0.42.

In the trailing 52-weeks, RWT hit 17.43 at the highest peak, while it's lowest trading point was 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 stock has a market capitalization of $1.33 billion. RWT is estimated to release their earnings results for the quarter on 0000-00-00, days from today.