
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust Inc. is poised for growth, supported by a combination of favorable bank regulatory trends and a leading position in residential consumer and investor lending, creating a strong tailwind heading into FY26. The company's mortgage banking income is expected to remain robust, evidenced by significant demand reflected in the $3.4 billion in whole loan sales during the recent quarter, which constituted 50% of fundings. Additionally, the stability of a 12% dividend, alongside potential mark-to-market appreciation from anticipated interest rate decreases, underscores a positive outlook for Redwood Trust's financial performance.
Bears say
Redwood Trust Inc. faces a negative outlook primarily due to its higher financing costs compared to peers, which is expected to result in lower returns for shareholders. The company has experienced a decline in average bridge loan size and overall asset values, with mark-to-market book value decreasing from high interest rates and operational expense pressures that have crowded out returns. Additionally, execution and management risks, exacerbated by significant capital exposure to legacy investments and challenges in portfolio management, pose further threats to return on equity and overall earnings generation, contributing to the declining book value.
This aggregate rating is based on analysts' research of Redwood Trust and is not a guaranteed prediction by Public.com or investment advice.
Redwood Trust (RWT) Analyst Forecast & Price Prediction
Start investing in Redwood Trust (RWT)
Order type
Buy in
Order amount
Est. shares
0 shares