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Redwood Trust (RWT)

Redwood Trust, Inc. is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. The Compoany delivers customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and its publicly-traded shares. Its consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Redwood Trust goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, Redwood Trust has managed its business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust ('REIT') for tax purposes.

Company profile

Ticker
RWT
Exchange
CEO
Christopher Abate
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
OF REDWOOD TRUST, INC. • Redwood Residential Acquisition Corporation • RWT Holdings, Inc. • RWT Securities, LLC • Sequoia Residential Funding, Inc. • CoreVest American Finance Lender LLC ...
IRS number
680329422

RWT stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$11.63
Low target
$10.50
High target
$13.50
Raymond James
Maintains
Strong Buy
$13.50
18 Jul 22
Piper Sandler
Maintains
Overweight
$11.00
28 Jun 22
BTIG
Maintains
Buy
$10.50
9 Jun 22
JP Morgan
Initiated
Overweight
$11.50
13 May 22

Calendar

5 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 443.85M 443.85M 443.85M 443.85M 443.85M 443.85M
Cash burn (monthly) 12.99M 2.7M 36.47M (no burn) 66.37M 294.44M
Cash used (since last report) 18.92M 3.93M 53.12M n/a 96.68M 428.88M
Cash remaining 424.93M 439.92M 390.73M n/a 347.18M 14.97M
Runway (months of cash) 32.7 162.8 10.7 n/a 5.2 0.1

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Abate Christopher J Common Stock Option exercise Acquire M No No 7.71 7,123 54.92K 205,112
1 Jul 22 Abate Christopher J Deferred Stock Units Common Stock Option exercise Dispose M No No 16.62 7,123 118.38K 0
1 Jul 22 Abate Christopher J Deferred Stock Units Common Stock Payment of exercise Dispose F No No 16.62 7,919 131.61K 7,123
1 Jul 22 Dashiell I Robinson Common Stock Option exercise Acquire M No No 7.71 2,850 21.97K 55,225
1 Jul 22 Dashiell I Robinson Deferred Stock Units Common Stock Option exercise Dispose M No No 16.62 2,850 47.37K 0
1 Jul 22 Dashiell I Robinson Deferred Stock Units Common Stock Payment of exercise Dispose F No No 16.62 3,167 52.64K 2,850
30 Jun 22 Kubicek Greg H Deferred Stock Units Common Stock Grant Acquire A No No 7.69 9,316.48 71.64K 17,851.75
30 Jun 22 Georganne Proctor Deferred Stock Units Common Stock Grant Acquire A No No 7.69 2,684.2 20.64K 4,135.53
30 Jun 22 George W Madison Deferred Stock Units Common Stock Grant Acquire A No No 7.69 5,413.44 41.63K 9,300.37
73.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 226 223 +1.3%
Opened positions 32 36 -11.1%
Closed positions 29 22 +31.8%
Increased positions 74 83 -10.8%
Reduced positions 83 60 +38.3%
13F shares Current Prev Q Change
Total value 951.48M 1.17B -18.4%
Total shares 88.16M 87.61M +0.6%
Total puts 525.8K 1.55M -66.0%
Total calls 214K 772.4K -72.3%
Total put/call ratio 2.5 2.0 +22.6%
Largest owners Shares Value Change
BLK Blackrock 20.42M $214.98M +0.2%
Vanguard 12.25M $128.95M +1.2%
STT State Street 4.13M $43.49M +8.1%
Linden Capital 4.02M $60.57M 0.0%
Capital World Investors 2.56M $26.98M 0.0%
LSV Asset Management 2.42M $25.54M +57.2%
Geode Capital Management 1.99M $20.92M +2.5%
IVZ Invesco 1.91M $20.13M +104.5%
FMR 1.73M $18.21M +3.9%
Clough Capital Partners L P 1.49M $15.71M +2.8%
Largest transactions Shares Bought/sold Change
Millennium Management 719.14K -1.53M -68.1%
Norges Bank 0 -1.14M EXIT
Balyasny Asset Management 990.43K +990.43K NEW
IVZ Invesco 1.91M +976.83K +104.5%
LSV Asset Management 2.42M +882.43K +57.2%
Renaissance Technologies 1.05M +801.33K +319.5%
Natixis 0 -780K EXIT
JPM JPMorgan Chase & Co. 1.27M -737.33K -36.8%
GS Goldman Sachs 239.38K -622.92K -72.2%
Boothbay Fund Management 586.95K +586.95K NEW

Financial report summary

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Management Discussion
  • Within this Results of Operations section, we provide commentary that compares results year-over-year for 2022 and 2021. Most tables include a "change" column that shows the amount by which the results from 2022 are greater or less than the results from the respective period in 2021. Unless otherwise specified, references in this section to increases or decreases during the "three-month periods" refer to the change in results for the second quarter of 2022, compared to the second quarter of 2021, and increases or decreases during the "six-month periods" refer to the change in results for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.
  • The increase in net interest income during the three- and six-month periods was primarily attributable to the performance of our investment portfolio, which accounted for $9 million and $33 million of the increase, respectively, and generally resulted from higher average asset balances in 2022, as we increased our investments in bridge loans and bonds we retained from CoreVest SFR securitizations during the prior twelve months. Additionally, we recognized elevated levels of discount accretion on our available-for-sale securities and yield maintenance income on our SFR securities during the first quarter of 2022. In association with a rise in interest rates during 2022 that accelerated into the second quarter, prepayment speeds on many of our assets slowed and discount accretion on our available-for-sale securities decreased meaningfully and we also experienced lower yield maintenance income on our SFR securities in the second quarter.
  • The increase in net interest income during the three- and six-month periods was also attributable to higher average balances of SFR loans held in inventory at our business purpose mortgage banking business, which accounted for $3 million and $4 million of the increase, respectively. Net interest income from residential mortgage banking activities increased by $2 million for the six-month periods, but decreased by $0.7 million during the three months periods, as we conservatively positioned our pipeline in the second quarter of 2022 given the challenging market backdrop.

Content analysis

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Removed: annualized, Churchill, comprising, development, execution, faster, fourth, improvement, improving, recognize, reduced, revised, sector, space, team