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Redwood Trust, Inc. (RWTP)
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Upturn Advisory Summary
06/16/2025: RWTP (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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
Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $
1 Year Target Price $
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -3.45% | Avg. Invested days 15 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/16/2025 |
Key Highlights
Company Size ETF | Market Capitalization 0 USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) - | Beta - | 52 Weeks Range 21.93 - 25.13 | Updated Date 06/28/2025 |
52 Weeks Range 21.93 - 25.13 | Updated Date 06/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE - | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Redwood Trust, Inc.
Company Overview
History and Background
Redwood Trust, Inc. was founded in 1994. It pioneered the securitization of prime jumbo residential loans. The company has evolved from a mortgage REIT to a specialty finance company.
Core Business Areas
- Residential Lending: Acquires and originates residential loans that are typically larger than conforming loan limits. Focuses on jumbo loans and provides financing solutions to underserved borrowers.
- Business Purpose Lending: Originates and acquires business purpose loans (BPLs) for residential investors. These loans are typically used to purchase, renovate, or construct single-family or small multifamily properties.
- Investment Portfolio: Manages a portfolio of mortgage-related investments, including residential mortgage-backed securities (RMBS) and business purpose lending loans. Provides a source of income and liquidity.
Leadership and Structure
Christopher J. Abate is the Chief Executive Officer. The company operates with a structured organizational hierarchy including executives responsible for specific lending areas, investments, and operations.
Top Products and Market Share
Key Offerings
- Jumbo Residential Loans: Redwood Trust securitizes jumbo residential loans, which exceed the conforming loan limits set by Fannie Mae and Freddie Mac. Market share is dependent on specific loan volume but significant as a pioneer in the space. Competitors include large banks and non-bank lenders that also offer jumbo loans like loanDepot, UWM, and PennyMac.
- Business Purpose Loans (BPL): Redwood originates and acquires BPLs used for residential investment properties. Market share varies by region and specific loan type. Competitors include Lima One Capital, CoreVest, and other private lenders.
Market Dynamics
Industry Overview
The mortgage REIT and specialty finance industry is influenced by interest rates, housing market conditions, and regulatory changes. The business purpose lending market is expanding as real estate investors increase their activity.
Positioning
Redwood Trust is positioned as a leader in the jumbo loan securitization market and is expanding its presence in the business purpose lending space. Its competitive advantage lies in its experience, established infrastructure, and relationships with investors.
Total Addressable Market (TAM)
The total addressable market for non-agency mortgages and business purpose lending is in the hundreds of billions of dollars. Redwood Trust's TAM is significant within these segments, especially in the jumbo loan and BPL sectors, where it is a key player. Market Value is projected to be $100-$250 Billion USD.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Established securitization platform
- Strong relationships with investors
- Diversified business model
- Brand Recognition
Weaknesses
- Sensitivity to interest rate changes
- Reliance on securitization markets
- Credit risk associated with loans
- Complex regulatory environment
- Small compared to competitors
Opportunities
- Expansion in business purpose lending
- Growth in the single-family rental market
- Increased demand for non-agency mortgages
- Strategic acquisitions
- Partnerships
Threats
- Rising interest rates
- Economic recession
- Increased competition
- Regulatory changes
- Declining Housing Market
Competitors and Market Share
Key Competitors
- IVR
- ARR
- STWD
Competitive Landscape
Redwood Trust faces competition from other mortgage REITs and specialty finance companies. Its advantage lies in its established platform and expertise. Disadvantages may include smaller market capitalization and resources compared to larger competitors.
Growth Trajectory and Initiatives
Historical Growth: Redwood Trust's growth has been driven by its expansion in the business purpose lending market and its continued presence in the jumbo loan securitization space.
Future Projections: Future growth projections require access to analyst estimates. Refer to financial news sources and analyst reports for these projections.
Recent Initiatives: Recent initiatives may include new product launches, strategic partnerships, and acquisitions designed to expand Redwood Trust's market reach.
Summary
Redwood Trust is a specialty finance company with a strong presence in jumbo loan securitization and growing in business purpose lending. Its experienced management and established platform are strengths, but interest rate sensitivity and reliance on securitization markets are challenges. Expansion in the BPL market and strategic acquisitions could drive future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Redwood Trust Investor Relations
- SEC Filings
- Financial News Sources
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
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 2025-01-30 | CEO & Director Mr. Christopher J. Abate CPA | ||
Sector - | Industry - | 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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