The stock of Redwood Trust, Inc. (NYSE:RWT) is now priced at $6.87 and the shares are -0.19 points down or -2.69% lower compared to its previous closing price of $7.06. The stock had 2.207 million contracts set over the past session. RWT shares’ daily volume is compared to its average trading volume at 3.753 million shares. However, it has a float of 114 million and although its performance was -1.01% over the week, it’s one to watch. Analysts have given the RWT stock a yearly average price target of $6.95 per share. It means the stock’s upside potential is 1.16% with the RWT share price recently placing at $6.75 to $7.035.
The shorts are running away from the Redwood Trust, Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the RWT shares have declined. Short interest in the stock represents just 10.58% of its float, but the volume has dropped by 0. The average intraday trading volume has been shares, which means that days to cover moved to roughly.
In the last trading session, Redwood Trust, Inc. (NYSE:RWT) dropped by -$0.07 over the week and gained $0.56 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $18.01. The stock recorded its established 52-week high on 02/18/20.
Since 04/03/20, the stock has traded to a low of $2.14 at 221.03%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.21. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Redwood Trust, Inc.’s two-week RSI is 50.24. This suggests that the stock is neutral at the moment and that RWT shares’ price movement remains stable. The stochastic readings are equally revealing at 59.45% meaning the RWT share price is currently in neutral territory.
The technical chart shows that the RWT stock will likely settle at between $7.02 and $7.17 per share. However, if the stock dips below $6.74, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $6.6.
Currently, the stock is trading in the green of MACD, with a reading of 0.09. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at JMP Securities raised their recommendation for RWT from Mkt Perform to Mkt Outperform in March 23 review while maintain their target price of $10. JMP Securities analysts downgraded their recommendation of the stock from Mkt Outperform to Mkt Perform in a flash note released to investors on February 20. Piper Sandler analysts see the stock as Neutral when the analysts initiated the share price coverage on January 31, placing it at $17.5.
The average rating for the RWT equity is 2.33 and is currently gathering a bullish momentum. Of 5 analysts tracking Redwood Trust, Inc. polled by Reuters, 3 rated RWT as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (2) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the RWT stock price is 8.35X ahead of its 12-month Consensus earnings per share estimates.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Redwood Trust, Inc. (NYSE:RWT) will decrease by about -100.04%, which will see them reach $21.7 million. The company’s full-year revenues are, however, expected to diminish by about -9.63%, down from $142 million to $128.32 million. RWT’s expected adjusted earnings should drop almost -58.97% to end up at $0.16 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -592.41% to record -$7.78/share.