Redwood Trust Posts $0.25 Core EPS, Targets Legacy Exposure Below 5%
RWT is trading near its 52-week low of $4.19 (13% above the low).
Summary
Redwood Trust delivered Q2 non-GAAP Core EAD EPS of $0.25 and an 18.5% EAD ROE, alongside record securitizations and over $8B in mortgage production for the second straight quarter. Management is reallocating capital to reduce legacy asset exposure to under 5% by end-2026, with remaining bridge loans marketed and home equity financing priced in Q3. Jones Trading lowered its price target to $6.00 from $6.25. The results follow a Q1 GAAP loss and a $125M senior notes offering completed in May, with the legacy reduction plan representing a strategic pivot toward higher-return areas.
At the time of this announcement, RWT was trading at $4.73 on NYSE in the Finance sector, with a market capitalization of approximately $574M. The 52-week trading range was $4.19 to $6.97. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.