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Upturn AI SWOT - About
RWT 
Redwood Trust Inc (RWT)
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Upturn Advisory Summary
03/24/2025: RWT (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit -0.27% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/24/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 803.81M USD | Price to earnings Ratio 18.91 | 1Y Target Price 7.88 |
Price to earnings Ratio 18.91 | 1Y Target Price 7.88 | ||
Volume (30-day avg) 886535 | Beta 1.69 | 52 Weeks Range 4.92 - 7.54 | Updated Date 04/1/2025 |
52 Weeks Range 4.92 - 7.54 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 11.86% | Basic EPS (TTM) 0.32 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.27% | Operating Margin (TTM) -0.83% |
Management Effectiveness
Return on Assets (TTM) 0.33% | Return on Equity (TTM) 4.51% |
Valuation
Trailing PE 18.91 | Forward PE 9.38 | Enterprise Value 17155091456 | Price to Sales(TTM) 3.31 |
Enterprise Value 17155091456 | Price to Sales(TTM) 3.31 | ||
Enterprise Value to Revenue 77.32 | Enterprise Value to EBITDA - | Shares Outstanding 132861000 | Shares Floating 131071521 |
Shares Outstanding 132861000 | Shares Floating 131071521 | ||
Percent Insiders 1.18 | Percent Institutions 79.58 |
Analyst Ratings
Rating 4 | Target Price 8.28 | Buy 2 | Strong Buy 4 |
Buy 2 | Strong Buy 4 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Redwood Trust Inc
Company Overview
History and Background
Redwood Trust, Inc. was founded in 1994. It is a specialty finance company focused on investing in residential mortgages, business purpose loans and other credit-related assets. Redwood went public in 1995 and has evolved to become a leading innovator in mortgage securitization and a significant player in the residential and commercial real estate lending markets.
Core Business Areas
- Residential Lending: Originates residential mortgages, primarily jumbo mortgages that do not conform to government-sponsored enterprise (GSE) guidelines. These mortgages are then securitized or sold to investors.
- Business Purpose Lending: Originates and acquires business purpose loans (BPL), which are loans used by real estate investors to purchase or refinance non-owner-occupied residential and commercial properties.
- Investment Portfolio: Manages a portfolio of mortgage-related investments, including residential mortgage-backed securities (RMBS) and other credit-related assets.
Leadership and Structure
Christopher Abate serves as the Chief Executive Officer. The company has a board of directors and operates with a traditional corporate structure, organized into departments such as finance, operations, risk management, and investment management.
Top Products and Market Share
Key Offerings
- Jumbo Mortgages: Redwood Trust originates jumbo mortgages for borrowers with high credit scores and significant assets. Redwood primarily sells these through securitization. Competitors include traditional banks and other non-bank lenders focusing on high-end residential mortgages. Market share information in this niche is fragmented, but Redwood is considered a leading player.
- Business Purpose Loans (BPL): Redwood originates and acquires BPLs used by real estate investors for fix-and-flip projects, rentals, and commercial property investments. Redwood competes with a mix of private lenders, REITs, and other specialty finance companies. Market share data is not readily available, but Redwood is a significant participant in this growing market.
- Residential Mortgage-Backed Securities (RMBS): Redwood Trust creates securitizations called Sequoia REMIC Trusts. These are offered to investors, allowing them to indirectly invest in residential mortgages. Competitors include large investment banks and other financial institutions. Market share in RMBS issuance varies based on market conditions.
Market Dynamics
Industry Overview
The specialty finance industry is highly sensitive to interest rate fluctuations, economic growth, and housing market conditions. Increased regulation and evolving investor sentiment also play significant roles. Demand for mortgage credit and real estate investment drives the performance of companies like Redwood Trust.
Positioning
Redwood Trust is positioned as a leader in the non-agency mortgage market, particularly in jumbo mortgages and business purpose lending. Its securitization expertise and established relationships with institutional investors provide a competitive advantage.
Total Addressable Market (TAM)
The TAM for non-agency mortgages and BPLs is estimated to be in the hundreds of billions of dollars annually. Redwood Trust is positioned to capture a portion of this market by providing alternative lending solutions not offered by traditional banks.
Upturn SWOT Analysis
Strengths
- Strong securitization expertise
- Established relationships with institutional investors
- Focus on niche lending markets (jumbo mortgages, BPLs)
- Experienced management team
- Strong capital base
Weaknesses
- Sensitivity to interest rate fluctuations
- Exposure to housing market cycles
- Reliance on wholesale funding markets
- Complexity of securitization process
- Potential for credit losses in BPL portfolio
Opportunities
- Growing demand for non-agency mortgages
- Expansion into new lending products
- Increased investment in technology
- Strategic acquisitions to expand market reach
- Capitalizing on disintermediation in the lending market
Threats
- Rising interest rates
- Economic recession
- Increased regulation
- Competition from traditional banks and other lenders
- Deterioration in housing market conditions
Competitors and Market Share
Key Competitors
- AGNC
- ARR
- IVR
Competitive Landscape
Redwood Trust competes with a diverse range of financial institutions, including traditional banks, mortgage REITs, and specialty finance companies. Redwood's focus on non-agency mortgages and BPLs differentiates it from some competitors. However, it faces strong competition from larger REITs and banks with greater resources.
Major Acquisitions
CoreVest American Finance Lender
- Year: 2019
- Acquisition Price (USD millions): 476
- Strategic Rationale: Expanded Redwood's presence in the business purpose lending market and diversified its revenue streams.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends can be determined by analyzing Redwood Trust's revenue, earnings, and asset growth over the past several years. This data requires up-to-date financial information.
Future Projections: Future growth projections would be based on analyst estimates and management guidance. This data is not available at this time.
Recent Initiatives: Recent initiatives include strategic investments in technology and expanding into new lending products within the BPL segment.
Summary
Redwood Trust is a specialty finance company focused on non-agency mortgages and business purpose lending. Redwood's expertise in securitization and established investor relationships are working well. The company's sensitivity to interest rate fluctuations and the housing market are major areas for concern. Expansion into new lending products could help boost future growth. The company's AI-based rating reflects these factors.
Similar Companies
AGNC
AGNC Investment Corp
AGNC
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ARR
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ARR
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BXMT
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BXMT
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IVR
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IVR
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Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Industry Reports
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market share estimates are approximate and based on available data.
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 1995-08-04 | CEO & Director Mr. Christopher J. Abate CPA | ||
Sector Real Estate | Industry REIT - Mortgage | 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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