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.

Several price targets were given for RWT by the analysts covering the stock. The most optimistic price target was 18.5, implying a possible profit of 7.62 percent. The lowest price target was 17, implying potential capital losses of -1.11 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

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. Meanwhile, fiscal year estimates have been revised downwards by -1.39 percent, compared to last month. 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. 0 analysts have revised their quarterly estimates upwards in the past 30 days, while 1 analysts made negative revisions. Over the same time period, 0 analysts revised their FY earnings estimates upwards, while 1 analysts decreased their estimates.

Analysts estimate earnings of RWT to grow at a rate of -22.7 percent. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. Investors like to see smaller values for the PEG ratio, 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. Currently the stock is 30.03 percent higher than its low, 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 market cap of RWT is $1.33 billion. RWT will post this quarters earnings in days, on 0000-00-00.