Redwood Trust Stock Fair Value Calculator – Redwood Trust Rated ‘Moderate Buy’ by Eight Brokerages
July 8, 2023
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Redwood Trust ($NYSE:RWT), Inc. has recently been rated a “Moderate Buy” by a total of eight different brokerages who are covering the stock. Their business model allows them to provide capital for residential mortgage lending, as well as invest in opportunistic real estate investments. The Moderate Buy rating given to the company by the eight brokerages signals that the stock is worth investing in, and that it’s currently performing well. This is bolstered by the company’s strong fundamentals and strong balance sheet, making it a very attractive option for investors.
Analysts have pointed out that the company has a potential upside to its current stock price, and have given it a moderate-risk rating. Investors should consider this stock when looking for a good long-term investment opportunity.
Stock Price
On Friday, REDWOOD TRUST was rated a ‘Moderate Buy’ by eight brokerages and its stock opened at $6.2 and closed at $6.3, up by 1.3% from its last closing price of $6.2. The rating was an increase from neutral and positive due to the improved performance of the company over the past few months. This was a welcome change for investors, as Redwood Trust‘s stock has experienced a volatile price action in the market in recent weeks. Despite the slight dip in share price recently, the company has managed to outperform its peers in the real estate industry and is now poised for further gains in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Redwood Trust. More…
| Total Revenues | Net Income | Net Margin |
| -51.34 | -194.56 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Redwood Trust. More…
| Operations | Investing | Financing |
| -139.14 | 213.89 | -276.87 |
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 |
| 13.12k | 11.98k | 9.99 |
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 |
| – | – | – |
Analysis – Redwood Trust Stock Fair Value Calculator
At GoodWhale, we have done a thorough analysis of REDWOOD TRUST‘s financials. Our proprietary Valuation Line has calculated that the fair value of REDWOOD TRUST share is around $8.9. However, REDWOOD TRUST stock is currently traded at $6.3, which is undervalued by 29.2%. This is a great opportunity for investors to purchase a share of REDWOOD TRUST at a more favorable price. More…
Peers
In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.
– Cherry Hill Mortgage Investment Corp ($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., a publicly traded real estate investment trust, has recently received an average rating of “Moderate Buy” by eight brokerages. Investment analysts have concluded that the stock has potential for long-term growth, as well as some short-term opportunities for appreciation. The company’s current financials show a strong financial position with low debt levels, and analysts expect that the stock will likely remain buoyant in the near future. There is also potential for dividend distributions in the future.
Investors should be aware of the risks associated with investing in this company and ensure they have diversified their portfolio appropriately. Ultimately, investors must decide if Redwood Trust, Inc. is right for their portfolio based on individual needs and goals.
