
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust Inc. is poised for a positive outlook driven by anticipated lower interest rates, regulatory trends, and its strong position in both residential consumer and investor lending, which could provide significant tailwinds heading into FY26. The company's mortgage banking income is expected to remain robust, bolstered by a growing demand from whole loan sales, evidenced by $3.4 billion distributed during the quarter. Furthermore, the stability of its 12% dividend and potential mark-to-market appreciation, contingent on declining interest rates and tighter credit spreads, reinforce the positive sentiment surrounding Redwood Trust's earnings potential.
Bears say
Redwood Trust Inc. faces a negative outlook primarily due to higher financing costs, which are anticipated to persist above those of its peers, negatively impacting returns for shareholders. The company's revenue model is strained by decreased investment fair value changes and lower-than-expected income from mortgage banking, with net interest income slightly surpassing estimates but overshadowed by substantial losses in other areas. Additionally, ongoing management execution risks and a significant capital exposure of $407 million in legacy investments contribute to a decline in book value, which has fallen to $7.35 from previous highs.
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
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