Redwood (NYSE: RWT) shares currently have a dividend yield of 4.90%. Redwood Trust, Inc. engages in investing, financing, and managing real estate-related assets. The company has a P/E ratio of 14.34. Currently there are 3 analysts that rate Redwood a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Redwood has been 1,046,700 shares per day over the past 30 days. Redwood has a market cap of $1.9 billion and is part of the real estate industry. Shares are up 35.6% year to date as of the close of trading on Tuesday. TheStreet Ratings rates Redwood as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Highlights from the ratings report include:
- Powered by its strong earnings growth of 1766.66% and other important driving factors, this stock has surged by 104.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- REDWOOD TRUST INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, REDWOOD TRUST INC increased its bottom line by earning $1.59 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.59).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, REDWOOD TRUST INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- RWT, with its decline in revenue, underperformed when compared the industry average of 16.4%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Net operating cash flow has significantly decreased to -$108.05 million or 4761.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Redwood Ratings Report.
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