Credit Suisse Sticks to Their Buy Rating for Redwood (RWT)

In a report released yesterday, Douglas Harter from Credit Suisse maintained a Buy rating on Redwood (RWTResearch Report), with a price target of $8.00. The company’s shares closed last Friday at $6.98.

According to, Harter is a 5-star analyst with an average return of 10.5% and a 67.1% success rate. Harter covers the Financial sector, focusing on stocks such as Ellington Residential Mortgage, Essential Properties Realty, and Arlington Asset Investment.

Currently, the analyst consensus on Redwood is a Strong Buy with an average price target of $7.63.

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Based on Redwood’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $943 million. In comparison, last year the company earned revenue of $76.84 million and had a net profit of $54.46 million.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RWT in relation to earlier this year.

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Redwood Trust, Inc. engages in the business of investing in mortgages and other real estate-related assets. It operates through the following segments: Investment Portfolio and Mortgage Banking. The Investment Portfolio segment includes a portfolio of investments in residential mortgage-backed securities (RMBS) retained from its Sequoia securitizations, as well as RMBS issued by third parties and other credit risk-related investments. The Mortgage Banking segment consists of operating a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. The company was founded by George E. Bull III, Douglas B. Hansen and Frederick H. Borden on April 11, 1994 and is headquartered in Mill Valley, CA.