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Upturn AI SWOT - About
RWT 
Redwood Trust Inc (RWT)
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Upturn Advisory Summary
07/01/2025: 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 $7.22
1 Year Target Price $7.22
| 3 | Strong Buy |
| 2 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 39.73% | Avg. Invested days 55 | 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 07/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 804.03M USD | Price to earnings Ratio 28.76 | 1Y Target Price 7.22 |
Price to earnings Ratio 28.76 | 1Y Target Price 7.22 | ||
Volume (30-day avg) 9 | Beta 1.35 | 52 Weeks Range 4.53 - 7.30 | Updated Date 07/1/2025 |
52 Weeks Range 4.53 - 7.30 | Updated Date 07/1/2025 | ||
Dividends yield (FY) 12.18% | Basic EPS (TTM) 0.21 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 16.5% | Operating Margin (TTM) 30.35% |
Management Effectiveness
Return on Assets (TTM) 0.23% | Return on Equity (TTM) 3.31% |
Valuation
Trailing PE 28.76 | Forward PE 9.43 | Enterprise Value 18509793280 | Price to Sales(TTM) 3.33 |
Enterprise Value 18509793280 | Price to Sales(TTM) 3.33 | ||
Enterprise Value to Revenue 73.03 | Enterprise Value to EBITDA - | Shares Outstanding 133118000 | Shares Floating 131244600 |
Shares Outstanding 133118000 | Shares Floating 131244600 | ||
Percent Insiders 1.31 | Percent Institutions 78.2 |
Analyst Ratings
Rating 2 | Target Price 7.22 | Buy 2 | Strong Buy 3 |
Buy 2 | Strong Buy 3 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
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 single-family residential mortgage-backed securities (RMBS) and originating and investing in commercial real estate loans. It has evolved from primarily securitizing prime jumbo mortgages to a more diversified business model.
Core Business Areas
- Residential Lending: Redwood purchases mortgage loans for either securitization or balance sheet investment, focusing on prime jumbo mortgages and other segments where traditional lenders are less active.
- Business Purpose Lending: Origination and investment in commercial real estate loans, including bridge loans and construction loans, catering to small balance transactions.
- Third-Party Investment Management: Management of capital for outside investors, including managing Redwood's own retained risk.
Leadership and Structure
Christopher Abate is the Chief Executive Officer. The company has a Board of Directors that oversees corporate governance.
Top Products and Market Share
Key Offerings
- Jumbo Mortgages: Redwood purchases jumbo mortgages that generally don't conform to Fannie Mae or Freddie Mac standards. They securitize a significant portion of these mortgages. Market share data isn't readily available, but Redwood is a major player in the non-agency RMBS market. Competitors include other non-bank lenders and some banks that originate jumbo mortgages. Estimated revenue from this segment is confidential.
- Business Purpose Loans (BPL): Redwood originates BPLs, including bridge loans and construction loans for commercial properties. Redwood also invests in SFR portfolios. Competitors include various private credit funds and specialty finance companies. Market share is fragmented. Estimated revenue from this segment is confidential.
Market Dynamics
Industry Overview
The specialty finance industry is highly competitive, with significant dependence on interest rates, credit spreads, and overall economic conditions. Demand for housing and commercial real estate drives the performance of Redwood's core products.
Positioning
Redwood Trust is a well-established player in the non-agency mortgage and BPL markets. It has a strong reputation for credit quality and risk management. Its competitive advantage lies in its experience, infrastructure, and access to capital.
Total Addressable Market (TAM)
TAM for the non-agency mortgage and BPL market can be estimated in the hundreds of billions annually, but highly volatile due to changes in rates. Redwood aims to capture a portion of this market via its securitization and lending activities. The total volume of jumbo mortgages originated in the US annually can fluctuate greatly, but is often in the $100-$200 Billion range depending on interest rates and credit spreads.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Experienced management team
- Robust risk management framework
- Diversified business model
Weaknesses
- Sensitivity to interest rate fluctuations
- Reliance on securitization markets
- Exposure to credit risk
- Complexity in loan origination
Opportunities
- Expansion into new lending segments
- Growth in BPL market
- Increased demand for non-agency mortgages
- Technological innovation in lending process
Threats
- Rising interest rates
- Economic recession
- Increased competition
- Regulatory changes
Competitors and Market Share
Key Competitors
- AGNC
- IVR
- NRZ
Competitive Landscape
Redwood competes with other REITs, specialty finance companies, and banks in the mortgage and commercial real estate lending markets. Redwoodu2019s advantages include its experienced management team and its reputation for credit quality. Disadvantages include its sensitivity to interest rate fluctuations.
Growth Trajectory and Initiatives
Historical Growth: Redwood's growth has been cyclical, dependent on market conditions and its ability to originate and securitize loans.
Future Projections: Future growth is dependent on the performance of the housing and commercial real estate markets, and Redwood's ability to manage risk and capitalize on opportunities.
Recent Initiatives: Recent initiatives include expanding its BPL business, enhancing its technology platform, and optimizing its capital structure.
Summary
Redwood Trust is a specialty finance company with a diversified business model focused on residential and commercial real estate lending. It faces challenges from interest rate volatility and economic uncertainty. Its strengths include its experienced management team and robust risk management. Successful expansion into new markets and effective management of capital will be critical for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Financial news sources
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and may vary.
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 CPA | ||
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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