Redwood Trust Stock Intrinsic Value – JMP Securities Confirms Outperform Rating and $8.00 Target Price for Redwood Trust on July 23, 2023
July 27, 2023
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Redwood Trust ($NYSE:RWT) is a publicly traded real estate investment trust that specializes in the residential mortgage-backed securities market. On July 23, 2023, JMP Securities, one of the most respected financial firms in the industry, gave Redwood Trust a major vote of confidence by reaffirming their Market Outperform Rating and setting a Target Price of $8.00. This news comes on the heels of another strong quarter for Redwood Trust, which reported solid revenue growth, despite concerns about potential headwinds in the mortgage-backed securities market. Investors who follow JMP Securities’ recommendations are likely to see positive returns on their investments, as the firm’s research and analysis are generally regarded as some of the most reliable sources in the industry.
Price History
On Tuesday, REDWOOD TRUST stock opened at $6.8 and closed at $6.8, down by 0.3% from previous closing price of 6.9. This could be seen as a result of the market volatility and the uncertainty created by the pandemic. This could be a sign of potential growth and improvement for the company’s stock in the near 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 Intrinsic Value
At GoodWhale, we have thoroughly examined the financials of REDWOOD TRUST and used our proprietary Valuation Line to determine the intrinsic value of the REDWOOD TRUST share. Our analysis shows that the intrinsic value of REDWOOD TRUST share is around $8.9. Currently, the market price of REDWOOD TRUST stock is $6.8, implying that it is undervalued by 23.8% when compared to its intrinsic value. This could be a great opportunity for investors to invest in REDWOOD TRUST and potentially reap higher returns on their money. More…
Peers
In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.
– Cherry Hill Mortgage Investment Corp ($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 (RWT) has recently received an important vote of confidence from analysts at JMP Securities, who reaffirmed their Market Outperform rating and set the target price for RWT at $8.00. Investors are advised to keep an eye on RWT as this optimistic stock outlook could mean a potential increase in the company’s share price. Other factors also bode well for RWT, such as their strong balance sheet and healthcare investments, which should bring further upside potential. With all these positive factors in mind, investors should consider adding RWT to their portfolios.
