RWT logo

REDWOOD TRUST INC

RWTNYSE
πŸ† #2994 by market capEarnings Oct 27US Equity
$3.85β–² $0.17 (+4.34%)
πŸŒ™ After hours$3.78β–Ό 1.82%Regular close Β· extended-hours price shown
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24hβ–² 4.3%
7dβ–² 3.8%
14dβ–Ό 1.0%
30dβ–Ό 16.4%
ytdβ–Ό 30.3%
1yβ–Ό 33.5%
🏦Market Cap
$484M
Small Cap
πŸ“ˆRevenue Growth (YoY)
+28.5%
High Growth
πŸ“ŠGross Margin
8.5%
Thin
πŸ’΅FCF Margin
32.9%
Strong
βš–οΈP/S Ratio
0.3x
Cheap
Otter Score
80
Good

Trading Snapshot

Day Range
$3.82 – $3.92
52-Week Range
$3.22 – $6.97
Volume
$5.83B
Avg Volume
$5.25B
Shares Outstanding
125.6M
Next Earnings
Nov 2, 2026

Fundamentals Snapshot

Annual Revenue
$1.11B
Last Q Revenue
$56M
P/E Ratio
83.2
P/S Ratio
0.3x
EPS (TTM)
$0.05
Dividend Yield
21.69%
Dilution (1yr)
βˆ’4.3%

Why Investors Own RWT

  • βœ“High-growth profile β€” revenue up +57.2% YoY with expanding US Equity exposure.
  • βœ“Healthy economics β€” 56% gross margin and 18% free-cash-flow margin.
  • βœ“New products and segments could unlock additional revenue streams.
⚠️ Key Risks

Execution delays, intensifying competition, and valuation compression if growth decelerates.

RWT logo

REDWOOD TRUST INC

RWT
Financial Trends
RevenueThe total money the company brought in from sales, before subtracting any costs.
$1.1Bβ–² +2.2% YoY
Gross MarginOf every $1 of sales, how much is left after the direct cost of making the product/service. Higher = more efficient.
95.6%β–Ό βˆ’1.3% YoY
Operating IncomeProfit from the core business after operating costs, but before interest and taxes. Negative means the core business isn’t profitable yet.
$1.1Bβ–² +15.3% YoY
Free Cash FlowCash left over after running the business and paying for equipment/capex. Negative means the company is burning cash.
βˆ’$10.1Bβ–² +72.2% YoY
Shares OutstandingHow many shares exist. Rising means the company is issuing more shares, which dilutes (shrinks) each existing owner’s slice.
126.6Mβ–Ό βˆ’4.3% YoY
Net CashCash minus total debt. Positive = more cash than debt (financially strong); negative = more debt than cash (net debt).
βˆ’$21.9Bβ–Ό βˆ’$5.8B YoY
StockOtter Β· stockotter.space

About REDWOOD TRUST INC

Redwood Trust, Inc. is a specialized financial enterprise operating across the United States, managing its activities through three distinct divisions. Its Residential Mortgage Banking segment functions as a conduit, sourcing residential home loans from various third-party originators. These loans are then either sold, converted into securities, or incorporated into Redwood Trust's own investment portfolio. This division also utilizes derivative financial instruments to mitigate risks associated with these residential loans. The Business Purpose Mortgage Banking segment is dedicated to originating and acquiring loans tailored for business uses, including single-family rental and bridge loans. Similar to the residential segment, these are subsequently securitized, sold, or added to the company's investment holdings. Finally, the Investment Portfolio segment deploys capital into a diverse array of assets. This includes securities retained from its own residential and business purpose securitization efforts, as well as residential and smaller multifamily bridge loans. The company also invests in residential mortgage-backed securities issued by other entities, Freddie Mac K-Series multifamily loan securitizations, reperforming loan securitizations, servicer advance investments, home equity investments, and various other housing-related assets. Qualifying as a Real Estate Investment Trust (REIT) for federal tax purposes, Redwood Trust, Inc. commits to distributing at least 90% of its taxable income as dividends to its shareholders. The company was established in 1994 and maintains its headquarters in Mill Valley, California.

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Otter Score Breakdown

How it's scoredFive components, each rated 1–5β˜… and equally weighted (20%), averaged to a 0–100 score:πŸ’Ž Quality β€” gross marginπŸš€ Growth β€” revenue YoYβš–οΈ Valuation β€” P/S ratio⚑ Momentum β€” 30-day price changeπŸ’§ Dilution β€” 1-yr share issuance (buybacks score higher)
πŸ’ŽQualityβ˜…β˜…β˜…β˜…β˜…
πŸš€Growthβ˜…β˜…β˜…β˜…β˜…
βš–οΈValuationβ˜…β˜…β˜…β˜…β˜…
⚑Momentumβ˜…β˜…β˜…β˜…β˜…
πŸ’§Dilutionβ˜…β˜…β˜…β˜…β˜…
Overall Score
Good
80/100

Analyst Price Target

β“˜
Average Target
$4.12
β–² +6.9% Upside
High Target$5.10
Low Target$3.56
Based on 16 analysts

Latest News & Updates

Defense WorldΒ·1d ago

Redwood Trust, Inc. (NYSE:RWT) Sees Significant Growth in Short Interest

Redwood Trust, Inc. (NYSE: RWT - Get Free Report) saw a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 21,510,300 shares, an increase of 238.4% f

Business WireΒ·15d ago

Bradley L. Radoff Urges Redwood Trust's Board of Directors to Explore a Sale

HOUSTON--(BUSINESS WIRE)--Bradley L. Radoff today issued the following open letter to the Board of Directors of Redwood Trust, Inc. (NYSE: RWT). *** September 14, 2026 Redwood Trust, Inc. One Belvedere Place, Suite 300 M

GuruFocusΒ·19d ago

Redwood Trust Prices Upsized $185.0 Million Convertible Senior Notes Offering

[url="]Redwood Trust, Inc.[/url] (NYSE: RWT; Γ’Β€ΒœRedwoodҀ or the Γ’Β€ΒœCompanyҀ), a leader in expanding access to housing for homebuyers and renters, today anno

Business WireΒ·19d ago

Redwood Trust Announces Third Quarter 2026 Common and Preferred Dividends

MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; β€œRedwood” or the β€œCompany”), a leader in expanding access to housing for homebuyers and renters, today announced that its Board of Directors (the β€œBoa

Business WireΒ·19d ago

Redwood Trust Announces Offering of Convertible Senior Notes Due 2030

MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; β€œRedwood” or the β€œCompany”), a leader in expanding access to housing for homebuyers and renters, today announced that it plans to offer, subject to ma

Seeking AlphaΒ·25d ago

Redwood Trust: Legacy Losses Obscure A Profitable Mortgage Banking Franchise

Redwood Trust is rated Buy with a 12-month base case price target of $5.52, reflecting a 35% total return potential. RWT trades at a 33% discount to GAAP book value, as the market over-penalizes legacy asset risks despit