
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust Inc. is positioned for strong performance due to favorable market conditions, including anticipated lower interest rates and the company's robust presence in residential consumer and investor lending. The company's revenue drivers remain solid, with a significant distribution of $3.4 billion in whole loan sales during the quarter, indicating a strong demand for mortgage banking services. Additionally, the stable 12% dividend and potential for mark-to-market appreciation, coupled with expectations of further Federal Reserve rate cuts, reinforce the positive outlook for Redwood Trust's earnings and stock performance.
Bears say
Redwood Trust Inc. faces challenges that contribute to a negative outlook for its stock, primarily driven by elevated financing costs that exceed peer levels, which is expected to result in lower returns for shareholders. The company experienced a significant decline in the average bridge loan size by 67%, despite funding $521 million in new bridge loans, and the market continues to pressure valuations due to high operating expenses and decreased mark-to-market book values amid rising interest rates. Additionally, management's execution risk and potential inadequacies in portfolio management could further jeopardize return on equity and overall earnings, with the investment portfolio's capital exposure and recent sales indicating ongoing portfolio strain.
This aggregate rating is based on analysts' research of Redwood Trust and is not a guaranteed prediction by Public.com or investment advice.
Redwood Trust (RWT) Analyst Forecast & Price Prediction
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