
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust Inc. is positioned favorably due to its strong revenue generation from the Redwood Investments segment, which continues to benefit from heightened demand in whole loan sales, amounting to $3.4 billion in the latest quarter. The expectation of lower interest rates and favorable bank regulatory trends is anticipated to provide a robust tailwind as the company approaches FY26, enhancing earnings potential. Additionally, a stable 12% dividend coupled with prospects for mark-to-market appreciation strengthens the overall positive outlook for Redwood Trust's stock.
Bears say
Redwood Trust Inc faces a negative outlook primarily due to elevated financing costs which are expected to result in lower-than-expected returns for shareholders. Additionally, the company has experienced a significant decline in average bridge loan sizes and has seen an overall drop in its mark-to-market book value, exacerbated by high operational expenses and persistent high-interest rates. Furthermore, execution and management risks, particularly regarding their investment portfolio's exposure and the effectiveness of their strategic management, may hinder earnings generation and jeopardize book value stability.
This aggregate rating is based on analysts' research of Redwood Trust and is not a guaranteed prediction by Public.com or investment advice.
Redwood Trust (RWT) Analyst Forecast & Price Prediction
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