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Upturn AI SWOT - About
RWT 
Redwood Trust Inc (RWT)
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Upturn Advisory Summary
10/24/2025: RWT (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $6.86
1 Year Target Price $6.86
| 3 | Strong Buy |
| 2 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 18.9% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/24/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 728.82M USD | Price to earnings Ratio - | 1Y Target Price 6.86 |
Price to earnings Ratio - | 1Y Target Price 6.86 | ||
Volume (30-day avg) 9 | Beta 1.47 | 52 Weeks Range 4.39 - 7.01 | Updated Date 10/26/2025 |
52 Weeks Range 4.39 - 7.01 | Updated Date 10/26/2025 | ||
Dividends yield (FY) 12.57% | Basic EPS (TTM) -0.66 |
Earnings Date
Report Date 2025-10-29 | When - | Estimate 0.154 | 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 6.15 | Enterprise Value 19936217088 | Price to Sales(TTM) 5.35 |
Enterprise Value 19936217088 | Price to Sales(TTM) 5.35 | ||
Enterprise Value to Revenue 134.95 | Enterprise Value to EBITDA - | Shares Outstanding 129223464 | Shares Floating 127424673 |
Shares Outstanding 129223464 | Shares Floating 127424673 | ||
Percent Insiders 1.29 | Percent Institutions 80.89 |
Upturn AI SWOT
Redwood Trust Inc
Company Overview
History and Background
Redwood Trust, Inc. was founded in 1994. It focuses on investing in mortgage-related assets, particularly in the residential and commercial real estate sectors. They securitize mortgages and manage portfolios of mortgage-backed securities. Over time, they've expanded into new lending platforms.
Core Business Areas
- Residential Lending: Acquires residential loans that generally do not conform to the standards for securitization by Fannie Mae or Freddie Mac. This includes Jumbo and Prime loans.
- Business Purpose Lending: Originates and acquires a portfolio of mortgages secured by single-family rental properties, fix and flip properties, and multifamily properties.
- Investment Portfolio: Manages a portfolio of mortgage-related investments, including residential and commercial mortgage-backed securities (MBS) and other real estate-related assets. This includes agency and non-agency securities.
Leadership and Structure
Christopher Abate serves as Chief Executive Officer. The company has a board of directors that oversees strategic direction. The structure consists of various departments focused on lending, investments, capital markets, and risk management.
Top Products and Market Share
Key Offerings
- Jumbo Loans: Non-conforming loans for high-value properties. Market share in Jumbo loans is estimated to be around 2-3%. Competitors include loanDepot, Rocket Mortgage, and various regional and national banks.
- Business Purpose Loans (BPL): Loans for real estate investors, covering property rehabilitation, fix and flip, and single-family rental properties. Market share is difficult to determine, but Redwood is a significant player in the space. Competitors include CoreVest, LendingOne and Kiavi.
- Residential Mortgage-Backed Securities (RMBS): They construct and invest in RMBS. Redwood Trust is a major investor in RMBS, and its market share fluctuates based on market conditions. Competitors are large institutional investors like BlackRock, PIMCO, and hedge funds.
Market Dynamics
Industry Overview
The mortgage industry is currently characterized by rising interest rates, fluctuating home prices, and regulatory changes. The non-agency mortgage market is becoming increasingly important as agencies limit risk exposure.
Positioning
Redwood Trust positions itself as a provider of innovative mortgage solutions, focusing on underserved segments of the market. Their competitive advantage lies in their ability to navigate complex mortgage markets and provide customized financing solutions. Their strong securitization platform provides a competitive advantage.
Total Addressable Market (TAM)
The total addressable market for non-agency mortgages is estimated to be in the hundreds of billions of dollars. Redwood Trust is positioned to capture a significant share of this market through its diverse product offerings and strong relationships with mortgage originators.
Upturn SWOT Analysis
Strengths
- Strong Securitization Platform
- Experienced Management Team
- Diversified Product Offerings
- Deep Understanding of Mortgage Markets
Weaknesses
- Sensitivity to Interest Rate Changes
- Reliance on Mortgage Origination Volumes
- Exposure to Credit Risk
- Complex Regulatory Environment
Opportunities
- Expanding into New Mortgage Lending Sectors
- Increasing Securitization Volumes
- Leveraging Technology to Improve Efficiency
- Capitalizing on Market Volatility
Threats
- Rising Interest Rates
- Economic Recession
- Increased Competition
- Regulatory Changes
Competitors and Market Share
Key Competitors
- AG Mortgage Investment Trust (MITT)
- Invesco Mortgage Capital Inc (IVR)
- Annaly Capital Management, Inc. (NLY)
Competitive Landscape
Redwood Trust faces competition from other mortgage REITs and lenders. Its competitive advantages include its securitization expertise and diversified product offerings. Disadvantages include sensitivity to interest rates and credit risk.
Major Acquisitions
CoreVest Finance
- Year: 2022
- Acquisition Price (USD millions): 458
- Strategic Rationale: Expanded Redwood's presence in the business purpose lending market.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been tied to the mortgage market and its fluctuations. Past performance does not guarantee future results.
Future Projections: Future growth is subject to analyst expectations, which are constantly updated to reflect changing market conditions. Analyst reports should be consulted for updated projections.
Recent Initiatives: Recent initiatives include investment in new lending platforms and securitization programs.
Summary
Redwood Trust is a diversified mortgage REIT focused on underserved markets. Its strength lies in its securitization platform and experienced management, but interest rate sensitivity remains a significant risk. Recent acquisitions have expanded their reach, but economic downturns could negatively impact their earnings. Investors should carefully consider these factors when assessing the company's outlook.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Redwood Trust Investor Relations
- SEC Filings
- Financial News Outlets
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share estimates are approximate and may vary depending on the source.
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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