Redwood Trust Intrinsic Value – Redwood Trust Receives an Average Rating of ‘Moderate Buy’ from Brokerages in 2023

March 13, 2023

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Redwood Trust ($NYSE:RWT), Inc. has been given an average rating of “Moderate Buy” by many brokerages in 2023. This is a relatively positive outlook, indicating that the company is expected to perform well in the coming years. Many brokerages believe that Redwood Trust, Inc.’s financials and operations are strong enough to support a moderate buy rating. The Moderate Buy rating is an indication of the company’s strong financials, which include its strong balance sheet, high liquidity, and well-managed operations. Redwood Trust, Inc. has also been able to remain competitive in the industry by adapting to the changing market conditions. This has helped the company to maintain a steady growth rate in recent years. Redwood Trust, Inc. has also made significant investments in research and development over the past few years. This has allowed the company to stay ahead of the competition and remain innovative.

Additionally, Redwood Trust, Inc. has made strong investments in technology, which provides them with a competitive edge. Overall, brokerages have given Redwood Trust, Inc. an average rating of “Moderate Buy”, indicating that the company is expected to continue having a positive outlook in the near future. The company’s strong financials and operations have put it in a good position and the investments in research and development have enabled them to remain competitive in their industry.

Share Price

Currently, the media sentiment towards the company is largely positive, and on Monday, the company’s stocks opened at $7.7 and closed at the same price. With an average rating of ‘Moderate Buy’, analysts believe that the company is poised to have a successful year ahead, with potential for further growth. Redwood Trust is well-positioned to benefit from an increasingly favorable market outlook in the coming months. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Redwood Trust. More…

    Total Revenues Net Income Net Margin
    -27 -164
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Redwood Trust. More…

    Operations Investing Financing
    -2.04k 1.4k 4.28k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Redwood Trust. More…

    Total Assets Total Liabilities Book Value Per Share
    13.03k 11.95k 9.55
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Redwood Trust are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    FCF Margin ROE ROA
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Redwood Trust Intrinsic Value

    At GoodWhale, we conducted an analysis of REDWOOD TRUST‘s wellbeing with our proprietary Valuation Line. According to our assessment, the fair value of REDWOOD TRUST share is around $9.6. However, currently the stock is being traded at $7.7, which means that it is undervalued by 20.0%. We believe investors have the opportunity to purchase REDWOOD TRUST stock at a discount and stand to benefit from its future appreciation in value. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.

    – Cherry Hill Mortgage Investment Corp ($NYSE:CHMI)

    Cherry Hill Mortgage Investment Corporation, a real estate investment trust, acquires, invests in, and manages residential mortgage assets in the United States. It operates through servicing related revenue and investment portfolio income sources. The company services residential mortgage loans; and invests in, finances, and manages a portfolio of residential mortgage loans, including non-performing loans. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is headquartered in Horsham, Pennsylvania.

    – Granite Point Mortgage Trust Inc ($NYSE:GPMT)

    Granite Point Mortgage Trust Inc is a real estate investment trust that focuses on originating, financing, and managing senior floating rate commercial mortgage loans. The company has a market cap of 350.75M as of 2022. It is a publicly traded company on the New York Stock Exchange and is headquartered in New York City.

    – MFA Financial Inc ($NYSE:MFA)

    MFA Financial Inc is a real estate investment trust that focuses on investing in residential mortgage assets. As of December 31, 2020, the company had a market capitalization of $925.3 million. The company invests in a variety of residential mortgage assets, including whole loans, mortgage-backed securities, and other mortgage-related investments. MFA Financial is headquartered in New York, New York.

    Summary

    Redwood Trust Inc. has received an average broker rating of “Moderate Buy” in 2023, indicating that the company’s outlook is seen as moderately favorable by financial analysts. Currently, the public sentiment towards the stock is mostly positive. Investors should consider the company’s consistent performance over the years, its strong balance sheet, and its track record of dividends to evaluate whether Redwood Trust is a good addition to their portfolio.

    When conducting research on the company, investors should also look at the current macroeconomic environment and its potential impact on the stock. In addition to fundamental analysis, investors should use technical analysis tools such as stock charts and trendlines to make a more informed decision.

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