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Redwood Trust, Inc. (RWTP)
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Upturn Advisory Summary
10/15/2025: 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.
Analysis of Past Performance
Type Stock | Historic Profit 1.63% | Avg. Invested days 57 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/15/2025 |
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 - |
Upturn AI SWOT
Redwood Trust, Inc.
Company Overview
History and Background
Redwood Trust, Inc. was founded in 1994. It pioneered the securitization of jumbo mortgages and has evolved into a specialty finance company focused on investing in housing credit assets. Key milestones include navigating multiple economic cycles and expanding its business lines beyond residential mortgages.
Core Business Areas
- Residential Lending: Originates and acquires residential mortgages, with a focus on prime jumbo and other non-agency loans. Sells a portion of its loans through securitization or whole loan sales.
- Business Purpose Lending: Originates and acquires loans for business purposes, including single-family rental, fix-and-flip, and construction loans.
- Investment Portfolio: Manages a portfolio of residential and business-purpose loans, mortgage-backed securities, and other real estate-related assets. This segment generates interest income and gains or losses from sales.
Leadership and Structure
The leadership team consists of the CEO, CFO, and other key executives. The organizational structure is divided into business segments, with each segment responsible for its own operations and financial performance. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Jumbo Residential Mortgages: Large mortgages that exceed conforming loan limits. Redwood is a major player in the jumbo mortgage securitization market. Market share data is difficult to pinpoint precisely due to varying definitions and data aggregation methods but they are a leading non-bank player. Competitors include PennyMac (PFSI), LoanDepot (LDI) and various bank-held mortgage operations.
- Market Share (%): Est. 5-10% of jumbo securitization market
- Market Share (%): Not readily available, but a growing area of focus
- Single-Family Rental Loans: Loans for purchasing or refinancing single-family rental properties. Redwood has been expanding its presence in this market. Competitors include various private lenders and institutional investors.
- Fix-and-Flip Loans: Short-term loans for renovating and reselling properties. Redwood provides capital to real estate investors in this sector. Competitors include CoreVest Finance, Kiavi, and other private lenders.
- Market Share (%): Not readily available, specific competitive landscape unknown.
Market Dynamics
Industry Overview
The mortgage market is influenced by interest rates, economic growth, housing affordability, and government regulations. The market is fragmented, with competition from banks, non-bank lenders, and private equity firms.
Positioning
Redwood Trust, Inc. is positioned as a specialty finance company with expertise in housing credit. Its competitive advantages include its securitization platform, strong relationships with institutional investors, and ability to originate and manage complex loan products.
Total Addressable Market (TAM)
The total addressable market for non-agency residential mortgages and business-purpose loans is estimated to be in the hundreds of billions of dollars annually. Redwood is positioned to capture a share of this market through its diverse product offerings and distribution channels.
Upturn SWOT Analysis
Strengths
- Expertise in housing credit and securitization
- Strong relationships with institutional investors
- Diversified business model
- Experienced management team
Weaknesses
- Sensitivity to interest rate changes
- Credit risk associated with loan portfolio
- Reliance on capital markets for funding
- Complexity of its investment portfolio
Opportunities
- Growing demand for non-agency mortgages
- Expansion into new business lines (e.g., single-family rental)
- Increased securitization activity
- Technological innovation in mortgage lending
Threats
- Economic recession
- Rising interest rates
- Increased competition
- Changes in government regulations
Competitors and Market Share
Key Competitors
- PennyMac (PFSI)
- Rithm Capital Corp. (RITM)
- AGNC Investment Corp. (AGNC)
Competitive Landscape
Redwood Trust, Inc. competes with a variety of firms, including banks, non-bank lenders, and private equity firms. Its competitive advantages include its expertise in housing credit, strong relationships with investors, and diversified business model.
Major Acquisitions
CoreVest Finance
- Year: 2019
- Acquisition Price (USD millions): 458
- Strategic Rationale: Expanded Redwood's presence in the business purpose lending market and added a leading platform for single-family rental and fix-and-flip loans.
Growth Trajectory and Initiatives
Historical Growth: Redwood Trust, Inc.'s growth has been driven by its ability to innovate and adapt to changing market conditions. It has expanded its business lines and geographic reach over time.
Future Projections: Analyst estimates for Redwood Trust, Inc.'s future growth vary, but generally anticipate continued growth in its core business lines. Growth rates are anticipated to be moderate due to market conditions.
Recent Initiatives: Recent strategic initiatives include expanding its single-family rental business, increasing its securitization activity, and investing in technology to improve efficiency.
Summary
Redwood Trust is a specialty finance company with expertise in housing credit, offering diversification in mortgage options and lending. The company has demonstrated a history of paying dividends. The company is impacted by economic factors such as interest rates which may reduce profitability. Redwood Trust needs to look out for more changes in government regulations that may reduce earnings.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Investor presentations
- Analyst reports
- Third-party financial data providers
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share estimates are approximate and based on available data. Financial data is 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 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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