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The latest announcement is out from Redwood ( (RWT) ).
On March 3, 2025, Redwood Trust, Inc. filed a Registration Statement with the SEC, updating its U.S. federal income tax considerations related to its REIT status and securities offerings. The filing includes an opinion from Latham & Watkins LLP confirming Redwood’s compliance with REIT tax requirements since 2011, though future compliance depends on meeting specific operational and ownership criteria. The company aims to maintain its REIT status, which allows it to avoid double taxation by distributing taxable income to shareholders, but it faces potential tax liabilities on undistributed income and certain transactions.
The most recent analyst rating on (RWT) stock is a Hold with a $5.75 price target. To see the full list of analyst forecasts on Redwood stock, see the RWT Stock Forecast page.
Spark’s Take on RWT Stock
According to Spark, TipRanks’ AI Analyst, RWT is a Neutral.
RWT’s overall score reflects significant financial challenges, including high leverage and negative cash flows, which are the most critical concerns. Technical analysis and valuation provide some balance, with a high dividend yield and oversold indicators. Strategic initiatives discussed in the earnings call and corporate events suggest potential long-term improvements, but immediate financial instability remains a major risk.
To see Spark’s full report on RWT stock, click here.
More about Redwood
Redwood Trust, Inc. operates within the real estate investment trust (REIT) industry, focusing on the acquisition, ownership, and management of real estate-related assets, including capital stock and debt securities.
Average Trading Volume: 1,047,488
Technical Sentiment Signal: Sell
Current Market Cap: $772.8M
See more insights into RWT stock on TipRanks’ Stock Analysis page.