RWT Stock Summary and Trading Ideas (Redwood Trust | NYSE:RWT)

Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.

Redwood Trust trades on the NYSE stock market under the symbol RWT.

As of February 7, 2025, RWT stock price declined to $6.61 with 182,240 million shares trading.

RWT has a beta of 0.94, meaning it tends to be less sensitive to market movements. RWT has a correlation of 0.17 to the broad based SPY ETF.

RWT has a market cap of $875.95 million. This is considered a Small Cap stock.

Last quarter Redwood Trust reported $26 million in Revenue and $.18 earnings per share. This fell short of revenue expectation by $-4 million and exceeded earnings estimates by $.04.

In the last 3 years, RWT traded as high as $12.23 and as low as $5.46.

The top ETF exchange traded funds that RWT belongs to (by Net Assets): IJR, VTI, IWM, VB, VBR.

RWT has underperformed the market in the last year with a return of +15.7%, while the SPY ETF gained +23.3%. In the last 3 month period, RWT fell short of the market, returning -4.6%, while SPY returned +2.2%. However, in the most recent 2 weeks RWT has outperformed the stock market by returning +4.6%, while SPY returned -1.2%.

RWT support price is $6.60 and resistance is $6.84 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that RWT shares will trade within this expected range on the day.