Added to YB: 2026-07-10
Pitch date: 2026-07-07
RWT [bullish]
Redwood Trust, Inc.
+7.63%
current return
Author Info
Company Info
Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States.
Market Cap
$590.1M
Pitch Price
$4.72
Price Target
N/A
Dividend
15.25%
EV/EBITDA
N/A
P/E
-5.81
EV/Sales
N/A
Sector
Mortgage Real Estate Investment Trusts (REITs)
Category
special_situation
Redwood Trust: Mortgage Banking Platform Depressed by Index Deletion
RWT: S&P600 index deletion (eff. July 8, ~4mm shares) created discount vs BVPS $7.12 (est $6.98 2Q26). Mortgage banking platform w/ 60% ROE Sequoia jumbo, Corevest, Aspire non-QM; blue-chip JVs (Oaktree, CPP, Castlelake $8Bn). 2026 consensus EAD $1.03. 16% tax-advantaged yield, deleveraged balance sheet; could re-rate to premium to book.
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