Financial analysts at Wedbush have delivered a notable adjustment to their projections for Redwood Trust’s upcoming earnings, signaling a less optimistic outlook for the real estate investment trust. Specifically, Wedbush analyst J. Mccanless has recalibrated Q3 2025 earnings estimates for Redwood Trust, Inc. (NYSE:RWT), lowering them to $0.14 per share from a prior forecast of $0.17. This revised Wedbush forecast underscores a cautious stance on the company’s immediate financial performance, initiating a ripple through the market concerning Redwood Trust earnings.

Beyond the immediate quarter, the revised estimates extend to the broader financial horizon for Redwood Trust. The current consensus estimate for the company’s full-year earnings stands at $0.78 per share, reflecting collective analyst expectations. Furthermore, Wedbush has also provided its estimates for Q4 2025, projecting earnings at $0.17 per share, and for the full fiscal year 2026, anticipating $0.72 per share. These figures contribute to the ongoing RWT stock analysis, offering investors a comprehensive view of projected profitability.

Wedbush is not alone in its recent assessment of Redwood Trust; several other equities research analysts have also published their findings, painting a varied picture of the company’s prospects. JPMorgan Chase & Co. recently increased their price target for Redwood Trust shares from $5.50 to $6.00, maintaining a “neutral” rating. Conversely, Keefe, Bruyette & Woods opted to downgrade the stock from an “outperform” to a “market perform” rating, concurrently reducing their price target from $7.00 to $6.50. This divergence in analyst ratings highlights the complex nature of evaluating a real estate investment trust.

Further adding to the mosaic of expert opinions, another research firm upgraded Redwood Trust shares from a “sell” to a “hold” rating, while Jones Trading reaffirmed a “buy” rating with a $7.00 price objective. JMP Securities, meanwhile, adjusted their price objective downward from $7.50 to $7.00, yet maintained a “market outperform” rating. This range of assessments culminates in a consensus rating of “Moderate Buy” for Redwood Trust, based on MarketBeat.com data, with an average target price of $7.28, offering a collective perspective on the company’s market standing and future financial outlook.

The market performance of Redwood Trust shares on Friday saw the stock open at $5.46, reflecting recent trading dynamics. Analysis of moving averages indicates the company’s fifty-day moving average is $5.80, while its 200-day moving average stands at $6.00. The stock’s trading range over the past year has seen a fifty-two week low of $4.68 and a high of $8.15. These technical indicators provide a snapshot of the stock’s historical price movements and current valuation within the broader financial markets.

Digging deeper into the company’s financial health, Redwood Trust commands a market capitalization of $726.84 million, operating with a PE ratio of -8.53 and a beta of 1.31, suggesting a higher volatility compared to the overall market. The company’s debt-to-equity ratio is reported at 18.74, alongside robust liquidity metrics with a quick ratio and current ratio both at 39.35. These figures offer critical insights into the company’s capital structure and its capacity to meet short-term obligations.

In terms of recent financial disclosures, Redwood Trust announced its quarterly earnings results on Wednesday, July 30th, reporting $0.18 earnings per share. This figure, however, missed the consensus estimate of $0.19 by a narrow margin. Despite a positive return on equity of 8.57%, the company recorded a negative net margin of 9.26%. Furthermore, the business reported revenue of ($38.10) million for the quarter, significantly below the consensus estimate of $31.00 million, underscoring challenges in its operational revenue generation.

The company also recently declared a quarterly dividend of $0.18 per share, which was distributed to shareholders on Monday, June 30th, with an ex-dividend date of June 23rd. This translates to a $0.72 annualized dividend, offering a yield of 13.2%. However, the company’s payout ratio currently stands at -112.50%, a figure that warrants closer examination by investors considering the long-term sustainability of its dividend policy.

Institutional investors and hedge funds have shown continued interest in Redwood Trust, with several prominent entities adjusting their stakes. Cambridge Investment Research Advisors Inc., Concurrent Investment Advisors LLC, New York State Teachers Retirement System, Focus Partners Wealth, and Apollon Wealth Management LLC are among those that boosted their holdings during recent quarters. Collectively, hedge funds and other institutional investors now own 74.34% of the stock, indicating significant professional interest and confidence in this specialty finance company.