Business

Worth Watching Stock for Traders: Redwood Trust, Inc. (“Redwood”) (NYSE: RWT)

 Redwood Trust, Inc. (“Redwood”) (NYSE: RWT) stock identified change of 16.66% away from 52-week low price and recently located move of -3.36% off 52-week high price. It has market worth of $1634.83M and dividend yield of 7.20%. RWT stock has been recorded 0.03% away from 50 day moving average and 3.12% away from 200 day moving average. Moving closer, we can see that shares have been trading -1.23% off 20-day moving average.

Redwood Trust, Inc. (“Redwood”) (NYSE: RWT) today announced that it intends to offer 11,000,000 shares of its common stock in an underwritten public offering.  Redwood expects to grant the underwriters a 30-day option to purchase up to an additional 1,650,000 shares of its common stock in the offering. All of the shares of common stock will be offered and sold by Redwood. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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.

 The Financial sector company, Redwood Trust noticed change of 0.42% to $16.67 along volume of 692445 shares in recent session compared to an average volume of 644.23K. The stock observed return of -1.19% in 5 days trading activity. The stock was at -0.48% over one month performance. RWT’s shares are at 3.28% for the quarter and driving a -2.06% return over the course of the past year and is now at 10.62% since this point in 2018.   The average volatility for the week at 1.07% and for month was at 1.13%. There are 98.07M shares outstanding and 96.15M shares are floated in market. Right now the stock beta is 0.69.

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