Notable Stock to Watch: Redwood Trust, Inc. (NYSE: RWT)

Redwood Trust, Inc. (NYSE: RWT) spotted trading -3.36% off 52-week high price. On the other end, the stock has been noted 16.66% away from the low price over the last 52-weeks. The stock changed 0.42% to recent value of $16.67. The stock transacted 692445 shares during most recent day however it has an average volume of 644.23K shares. The company has 98.07M of outstanding shares and 96.15M shares were floated in the market.  

Redwood Trust, Inc. (“Redwood”) (NYSE: RWT) today announced the upsizing and pricing of its previously announced underwritten public offering. Redwood will sell 12,500,000 shares of its common stock at a public offering price of $16.08 per share, resulting in gross proceeds of $201 million. In connection with the offering, Redwood has granted the underwriters a 30-day option to purchase up to an additional 1,875,000 shares of its common stock. The offering is expected to close on September 6, 2019.

Redwood intends to use the net proceeds from this offering to fund its business and investment activity, which may include funding pending or recently completed investment transactions (including, for example, funding the remainder of the purchase price for subordinate securities backed by a pool of reperforming and non-performing residential mortgage loans, and funding capital calls on a multifamily whole loan investment fund). In addition, Redwood may use a portion of the net proceeds from this offering to fund new investment opportunities in portfolios of residential, multifamily, or business purpose residential loans or securities, to make other portfolio investments, to fund its mortgage banking business, and to repay its $201 million principal amount of exchangeable senior notes maturing in November 2019, and for general corporate purposes. Pending such uses, Redwood may use all or a portion of the net proceeds from this offering to temporarily reduce borrowings under its short-term residential or business purpose loan warehouse facilities and its short-term real estate securities repurchase facilities and Redwood may subsequently re-borrow amounts under such facilities to fund the activity described above.

J.P. Morgan, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the proposed offering. JMP Securities LLC and Keefe, Bruyette & Woods, Inc. are acting as co-managers for the proposed offering.

 Its earnings per share (EPS) expected to touch remained -16.60% for this year while earning per share for the next 5-years is expected to reach at 0.36%. RWT has a gross margin of 26.80% and an operating margin of 26.00% while its profit margin remained 24.50% for the last 12 months. 

 The price moved ahead of -1.23% from the mean of 20 days, 0.03% from mean of 50 days SMA and performed 3.12% from mean of 200 days price. Company’s performance for the week was -1.19%, -0.48% for month and YTD performance remained 10.62%.

Leave a Reply

Your email address will not be published. Required fields are marked *