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Upturn AI SWOT - About
RWT 
Redwood Trust Inc (RWT)
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Upturn Advisory Summary
08/29/2025: RWT (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $6.81
1 Year Target Price $6.81
| 3 | Strong Buy |
| 2 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 26.31% | Avg. Invested days 48 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 08/29/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 790.84M USD | Price to earnings Ratio - | 1Y Target Price 6.81 |
Price to earnings Ratio - | 1Y Target Price 6.81 | ||
Volume (30-day avg) 9 | Beta 1.36 | 52 Weeks Range 4.53 - 7.30 | Updated Date 08/30/2025 |
52 Weeks Range 4.53 - 7.30 | Updated Date 08/30/2025 | ||
Dividends yield (FY) 11.79% | Basic EPS (TTM) -0.66 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -54.41% | Operating Margin (TTM) 246.52% |
Management Effectiveness
Return on Assets (TTM) -0.39% | Return on Equity (TTM) -6.51% |
Valuation
Trailing PE - | Forward PE 7.84 | Enterprise Value 19998242816 | Price to Sales(TTM) 5.8 |
Enterprise Value 19998242816 | Price to Sales(TTM) 5.8 | ||
Enterprise Value to Revenue 135.19 | Enterprise Value to EBITDA - | Shares Outstanding 129223000 | Shares Floating 127354893 |
Shares Outstanding 129223000 | Shares Floating 127354893 | ||
Percent Insiders 1.34 | Percent Institutions 80.97 |
Upturn AI SWOT
Redwood Trust Inc
Company Overview
History and Background
Redwood Trust, Inc. was founded in 1994. It is a specialty finance company focused on investing in mortgage-related assets. Initially, Redwood Trust was a pioneer in the securitization of jumbo mortgages and has evolved to focus on various segments of the residential and commercial mortgage markets.
Core Business Areas
- Residential Lending: Invests in and originates residential mortgages through Redwood Trust's RWT Property platform. Provides primarily credit risk transfer and credit risk sharing.
- Business Purpose Lending: Focuses on providing financing solutions for professional real estate investors in the single-family rental and fix-and-flip markets.
- Investment Portfolio: Manages a portfolio of mortgage-related assets, including mortgage-backed securities (MBS) and other credit-sensitive investments. Generates income through net interest income and asset gains.
- Third-Party Investment Management: Offers investment strategies and solutions in housing credit to institutional investors.
Leadership and Structure
Christopher J. Abate serves as Chief Executive Officer. The company operates with a board of directors and a management team overseeing various business segments.
Top Products and Market Share
Key Offerings
- Jumbo Mortgages: Redwood Trust was a key player in the early securitization of jumbo mortgages. Market share is difficult to precisely determine, but Redwood is a known participant. Competitors include traditional banks and other non-bank lenders.
- Business Purpose Loans (BPL): Provides financing for real estate investors looking to acquire, renovate, or construct residential properties. Market share is fragmented, but Redwood Trust is a significant player. Competitors include Arbor Realty Trust (ABR), Ready Capital Corp (RC), and other private lenders.
- Residential Mortgage-Backed Securities (RMBS): Invests in RMBS to generate income. The market is dominated by large institutional investors and government-sponsored enterprises (GSEs). Competitors include Annaly Capital Management (NLY) and AGNC Investment Corp. (AGNC).
- Credit Risk Transfer (CRT): Engages in transactions with government sponsored agencies to transfer risks to private investors. Competitors include Essent Group Ltd.(ESNT) and Radian Group Inc.(RDN).
Market Dynamics
Industry Overview
The mortgage finance industry is impacted by interest rate movements, housing market trends, regulatory changes, and macroeconomic conditions. Demand is influenced by affordability, employment rates, and consumer confidence.
Positioning
Redwood Trust positions itself as a specialty finance company that focuses on underserved segments of the mortgage market. Its competitive advantage is its expertise in credit risk management and securitization.
Total Addressable Market (TAM)
The TAM for mortgage lending and mortgage-related investments is in the trillions of dollars. Redwood Trust's positioning allows it to capture niche segments with strong growth potential. It is a small player in the larger RMBS market, but has a larger share in the Jumbo and BPL segments.
Upturn SWOT Analysis
Strengths
- Expertise in credit risk management
- Diversified business segments
- Established relationships with institutional investors
- Focus on underserved markets
Weaknesses
- Sensitivity to interest rate fluctuations
- Exposure to credit risk in mortgage assets
- Reliance on capital markets for funding
- Complex regulatory environment
Opportunities
- Expansion into new mortgage-related asset classes
- Increased demand for private-label securitizations
- Growth in the single-family rental market
- Adoption of new technologies to improve efficiency
Threats
- Rising interest rates
- Economic recession
- Increased competition
- Regulatory changes
Competitors and Market Share
Key Competitors
- Annaly Capital Management (NLY)
- AGNC Investment Corp. (AGNC)
- Arbor Realty Trust (ABR)
Competitive Landscape
Redwood Trust differentiates itself through its focus on underserved segments and expertise in credit risk management. It faces competition from larger REITs with greater capital resources.
Major Acquisitions
CoreVest Finance
- Year: 2022
- Acquisition Price (USD millions): 458
- Strategic Rationale: The acquisition of CoreVest Finance expanded Redwood Trust's presence in the business purpose lending market, providing access to a larger pool of borrowers and increased origination capabilities.
Growth Trajectory and Initiatives
Historical Growth: Redwood Trust's growth has been driven by its ability to identify and capitalize on opportunities in the mortgage market. However, financial performance has been cyclical due to interest rate swings and economic fluctuations.
Future Projections: Analyst estimates for Redwood Trust's future growth vary depending on factors such as interest rate forecasts, housing market trends, and the company's strategic initiatives. Growth depends on the economy.
Recent Initiatives: Recent initiatives include expanding its business purpose lending platform and increasing its investments in mortgage-related assets.
Summary
Redwood Trust is a specialty finance company with expertise in mortgage credit risk management. The company faces challenges due to interest rate sensitivity and the potential for economic downturns, but it also has opportunities to expand into new markets and asset classes. Its competitive advantage lies in its focus on underserved segments and its established relationships with institutional investors. Performance depends on future market conditions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC filings
- Company website
- Market research reports
- Analyst estimates
Disclaimers:
This analysis is based on publicly available information and should not be construed as financial advice. Market conditions can change rapidly, and past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Redwood Trust Inc
Exchange NYSE | Headquaters Mill Valley, CA, United States | ||
IPO Launch date 1995-08-04 | CEO & Director Mr. Christopher J. Abate C.P.A. | ||
Sector Real Estate | Industry REIT - Mortgage | Full time employees 283 | Website https://www.redwoodtrust.com |
Full time employees 283 | Website https://www.redwoodtrust.com | ||
Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. Its CoreVest Mortgage Banking segment operates a platform that originates business purpose loans to investors in single-family and multifamily residential properties and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Redwood Investments segment invests in securities retained from residential consumer and investor securitization activities, and business purpose lending bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. The company is elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.
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