Redwood Trust Stock Buy Hold or Sell Recommendation
| RWT Stock | USD 7.20 0.03 0.42% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Redwood Trust is 'Cautious Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Redwood Trust given historical horizon and risk tolerance towards Redwood Trust. When Macroaxis issues a 'buy' or 'sell' recommendation for Redwood Trust, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Redwood Trust Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Redwood Stock please use our How to Invest in Redwood Trust guide. Note, we conduct extensive research on individual companies such as Redwood and provide practical buy, sell, or hold advice based on investors' constraints. Redwood Trust. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Redwood |
Execute Redwood Trust Buy or Sell Advice
The Redwood recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Redwood Trust. Macroaxis does not own or have any residual interests in Redwood Trust or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Redwood Trust's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Redwood Trust Trading Alerts and Improvement Suggestions
| Redwood Trust generated a negative expected return over the last 90 days | |
| Redwood Trust has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the last year's revenue of 147.12 M. Reported Net Loss for the year was (6.27 M) with loss before taxes, overhead, and interest of (27.55 M). | |
| Redwood Trust has about 258.89 M in cash with (2.02 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.64. | |
| Over 81.0% of the company shares are owned by institutional investors | |
| On 30th of September 2024 Redwood Trust paid $ 0.17 per share dividend to its current shareholders | |
| Latest headline from MacroaxisInsider: Acquisition by Douglas Hansen of 28517 shares of Redwood Trust subject to Rule 16b-3 |
Redwood Trust Returns Distribution Density
The distribution of Redwood Trust's historical returns is an attempt to chart the uncertainty of Redwood Trust's future price movements. The chart of the probability distribution of Redwood Trust daily returns describes the distribution of returns around its average expected value. We use Redwood Trust price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Redwood Trust returns is essential to provide solid investment advice for Redwood Trust.
| Mean Return | 0.01 | Value At Risk | -2.16 | Potential Upside | 2.37 | Standard Deviation | 1.49 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Redwood Trust historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Redwood Stock Institutional Investors
The Redwood Trust's institutional investors refer to entities that pool money to purchase Redwood Trust's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Charles Schwab Investment Management Inc | 2024-09-30 | 1.6 M | Mirae Asset Global Etfs Holdings Ltd. | 2024-06-30 | 1.5 M | Northern Trust Corp | 2024-09-30 | 1.4 M | Evergreen Capital Management Llc | 2024-09-30 | 1.2 M | Ceredex Value Advisors Llc | 2024-09-30 | 1.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 1 M | Kennedy Capital Management Inc | 2024-09-30 | 1 M | Raymond James & Associates | 2024-09-30 | 995.5 K | Van Eck Associates Corporation | 2024-06-30 | 976.3 K | Blackrock Inc | 2024-06-30 | 22.2 M | Vanguard Group Inc | 2024-09-30 | 14.8 M |
Redwood Trust Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Redwood Trust or Mortgage Real Estate Investment Trusts (REITs) sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Redwood Trust's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Redwood stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.07 | |
β | Beta against Dow Jones | 0.60 | |
σ | Overall volatility | 1.51 | |
Ir | Information ratio | -0.08 |
Redwood Trust Volatility Alert
Redwood Trust has relatively low volatility with skewness of 0.6 and kurtosis of 3.3. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Redwood Trust's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Redwood Trust's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Redwood Trust Fundamentals Vs Peers
Comparing Redwood Trust's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Redwood Trust's direct or indirect competition across all of the common fundamentals between Redwood Trust and the related equities. This way, we can detect undervalued stocks with similar characteristics as Redwood Trust or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Redwood Trust's fundamental indicators could also be used in its relative valuation, which is a method of valuing Redwood Trust by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Redwood Trust to competition |
| Fundamentals | Redwood Trust | Peer Average |
| Return On Equity | 0.0701 | -0.31 |
| Return On Asset | 0.0052 | -0.14 |
| Profit Margin | 0.30 % | (1.27) % |
| Operating Margin | 0.31 % | (5.51) % |
| Current Valuation | 17.4 B | 16.62 B |
| Shares Outstanding | 132.27 M | 571.82 M |
| Shares Owned By Insiders | 1.18 % | 10.09 % |
| Shares Owned By Institutions | 81.28 % | 39.21 % |
| Number Of Shares Shorted | 4.72 M | 4.71 M |
| Price To Earning | 2.09 X | 28.72 X |
| Price To Book | 0.82 X | 9.51 X |
| Price To Sales | 3.55 X | 11.42 X |
| Revenue | 147.12 M | 9.43 B |
| Gross Profit | (27.55 M) | 27.38 B |
| EBITDA | 658.16 M | 3.9 B |
| Net Income | (6.27 M) | 570.98 M |
| Cash And Equivalents | 258.89 M | 2.7 B |
| Cash Per Share | 4.64 X | 5.01 X |
| Total Debt | 13.07 B | 5.32 B |
| Debt To Equity | 9.89 % | 48.70 % |
| Current Ratio | 6.57 X | 2.16 X |
| Book Value Per Share | 8.74 X | 1.93 K |
| Cash Flow From Operations | (2.02 B) | 971.22 M |
| Short Ratio | 7.00 X | 4.00 X |
| Earnings Per Share | 0.56 X | 3.12 X |
| Price To Earnings To Growth | 1.39 X | 4.89 X |
| Target Price | 8.43 | |
| Number Of Employees | 289 | 18.84 K |
| Beta | 1.63 | -0.15 |
| Market Capitalization | 952.32 M | 19.03 B |
| Total Asset | 14.5 B | 29.47 B |
| Retained Earnings | (1.3 B) | 9.33 B |
| Working Capital | (1.5 B) | 1.48 B |
Note: Acquisition by Douglas Hansen of 28517 shares of Redwood Trust subject to Rule 16b-3 [view details]
Redwood Trust Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Redwood . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Redwood Trust Buy or Sell Advice
When is the right time to buy or sell Redwood Trust? Buying financial instruments such as Redwood Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Redwood Trust in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Construction Thematic Idea Now
Construction
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Redwood Stock Analysis
When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.