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RWT 
Redwood Trust Inc (RWT)
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Upturn Advisory Summary
12/10/2025: RWT (2-star) is currently NOT-A-BUY. Pass it for now.
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 $6.78
1 Year Target Price $6.78
| 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 12/10/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 722.36M USD | Price to earnings Ratio - | 1Y Target Price 6.78 |
Price to earnings Ratio - | 1Y Target Price 6.78 | ||
Volume (30-day avg) 9 | Beta 1.62 | 52 Weeks Range 4.39 - 6.38 | Updated Date 12/10/2025 |
52 Weeks Range 4.39 - 6.38 | Updated Date 12/10/2025 | ||
Dividends yield (FY) 13.09% | Basic EPS (TTM) -0.84 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -79.96% | Operating Margin (TTM) -2.49% |
Management Effectiveness
Return on Assets (TTM) -0.47% | Return on Equity (TTM) -8.69% |
Valuation
Trailing PE - | Forward PE 5.52 | Enterprise Value 21568090112 | Price to Sales(TTM) 5.97 |
Enterprise Value 21568090112 | Price to Sales(TTM) 5.97 | ||
Enterprise Value to Revenue 161.04 | Enterprise Value to EBITDA - | Shares Outstanding 126682210 | Shares Floating 124817448 |
Shares Outstanding 126682210 | Shares Floating 124817448 | ||
Percent Insiders 1.32 | Percent Institutions 80.79 |
Upturn AI SWOT
Redwood Trust Inc
Company Overview
History and Background
Redwood Trust Inc. was founded in 1994. It is a real estate investment trust (REIT) that operates primarily in the mortgage and real estate sectors. The company has evolved from focusing on mortgage banking to encompassing a broader range of real estate investment strategies, including residential and commercial mortgage credit, as well as single-family rental investments.
Core Business Areas
- Segment Name 1: Mortgage Banking Segment: This segment focuses on originating, acquiring, selling, and servicing residential mortgages. It includes the Redwood Residential Mortgage division, which offers a wide range of mortgage products, and the Redwood Multifamily Mortgage division, which focuses on commercial real estate loans.
- Segment Name 2: Investment Portfolio Segment: This segment involves investing in various credit and real estate-related assets. This includes residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other debt and equity investments in the real estate sector.
- Segment Name 3: Single-Family Rentals: Redwood Trust is also a significant investor in the single-family rental market, acquiring and managing a portfolio of rental homes.
Leadership and Structure
Redwood Trust Inc. is led by a management team that includes a Chief Executive Officer (CEO), Chief Financial Officer (CFO), and other senior executives overseeing various business segments. The company is structured to manage its diverse real estate and mortgage credit investments.
Top Products and Market Share
Key Offerings
- Product Name 1: Residential Mortgage Origination: Redwood Trust originates residential mortgages through its Redwood Residential Mortgage division. This includes conventional, FHA, and VA loans. Competitors include large banks, independent mortgage lenders, and online mortgage providers such as Rocket Mortgage (Quicken Loans), Chase, Wells Fargo, and United Wholesale Mortgage.
- Product Name 2: Multifamily and Commercial Real Estate Lending: The company provides financing solutions for multifamily properties and other commercial real estate assets. Competitors include CMBS issuers, life insurance companies, agency lenders (Fannie Mae, Freddie Mac), and other commercial real estate debt funds.
- Product Name 3: Single-Family Rental Investments: Redwood Trust acquires and manages a portfolio of single-family rental properties. This is a capital-intensive business with competitors ranging from large institutional investors like Invitation Homes and American Homes 4 Rent to smaller local property management companies.
Market Dynamics
Industry Overview
The mortgage and real estate investment industries are highly cyclical and influenced by interest rates, housing market conditions, economic growth, and regulatory changes. The residential mortgage market is competitive, with significant volume driven by refinance and purchase activity. The commercial real estate debt market is influenced by property types, tenant demand, and capital availability.
Positioning
Redwood Trust is positioned as a diversified REIT with a strong focus on mortgage credit and real estate investments. Its key competitive advantages include its established platform, diverse capital sources, and expertise in navigating complex credit markets. The company aims to generate stable income and capital appreciation through its various real estate-related activities.
Total Addressable Market (TAM)
The total addressable market for Redwood Trust's business lines is vast, encompassing the entire U.S. residential and commercial real estate finance market, as well as the single-family rental market. The U.S. mortgage market alone is trillions of dollars. Redwood Trust operates within specific niches of this TAM, focusing on areas where it can leverage its expertise and capital.
Upturn SWOT Analysis
Strengths
- Diversified business model across mortgage banking, investment portfolio, and single-family rentals.
- Established relationships and expertise in mortgage credit markets.
- Access to diverse funding sources, including securitization markets.
- Experienced management team.
Weaknesses
- Sensitivity to interest rate fluctuations and market volatility.
- Exposure to credit risk in its investment portfolio.
- Capital-intensive nature of the single-family rental business.
Opportunities
- Growth in the single-family rental market.
- Potential for expansion in niche mortgage lending areas.
- Leveraging technology to enhance operational efficiency.
- Favorable demographic trends for housing demand.
Threats
- Rising interest rates impacting mortgage demand and valuations.
- Economic downturn leading to increased delinquencies and defaults.
- Increased competition in all business segments.
- Regulatory changes affecting the mortgage and real estate industries.
Competitors and Market Share
Key Competitors
- Rocket Companies, Inc. (RKT)
- United Wholesale Mortgage (UWM)
- New Residential Mortgage LLC (NRM)
Competitive Landscape
Redwood Trust competes in a fragmented market. Its advantages lie in its diversified model and specialized credit expertise. However, it faces competition from larger, more capitalized players in mortgage origination and from institutional investors in the single-family rental space.
Growth Trajectory and Initiatives
Historical Growth: Redwood Trust has demonstrated growth through strategic acquisitions, expansion of its origination platforms, and diversification into new investment areas like single-family rentals. Its growth has been cyclical, aligning with broader real estate market trends.
Future Projections: Future growth is anticipated through continued expansion of its single-family rental portfolio, strategic mortgage lending initiatives, and prudent management of its investment portfolio. Analyst estimates often focus on its ability to adapt to changing interest rate environments and leverage its expertise in credit markets.
Recent Initiatives: Recent initiatives may include the expansion of its correspondent lending platform, investments in technology to improve operational efficiency, and strategic acquisitions to bolster its presence in key markets or asset classes.
Summary
Redwood Trust Inc. is a diversified real estate investment trust with strengths in mortgage credit and real estate. Its diversified business model and expertise are key advantages, but it faces significant risks from interest rate volatility and market downturns. Recent initiatives to expand its single-family rental portfolio and optimize its mortgage platforms are positive, but continued careful risk management and adaptation to economic conditions are crucial for sustained success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (SEC)
- Financial News Outlets (e.g., Bloomberg, Wall Street Journal)
- Industry Research Reports
- Market Data Providers
Disclaimers:
This JSON output is an analysis based on publicly available information and AI interpretation. It is not financial advice. Investors should conduct their own due diligence before making any investment decisions. Market share data and financial figures are estimates and subject to change.
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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