Redwood Trust Stock Price and Value Analysis

Should you buy Redwood Trust stock? (NYSE:RWT). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is solid.
  • This company has a large dividend yield!
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.

Inside the RWT Numbers

RWT Price
(Redwood Trust stock price per share)
$7.44
[?] RWT Fair Price
(based on intrinsic value)
$-47.47
[?] RWT Safety Price (based on a variable margin of safety) $-30.86
[?] PE Ratio versus Sector 27% lower than other Real Estate stocks
[?] PE Ratio versus Industry 0% lower than other Unknown stocks
[?] Cash Yield -146.51%
[?] Free Cash Flow Jitter 189%
[?] Dividend Yield 14%
Shares Shorted 10,345,627

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 10,345,627 shares shorted. With 115,526,904 shares available for purchase and an average trading volume over the past 10 trading days of 940,780, it would take at least 10.997 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Redwood Trust Stock on Sale?

We believe that Redwood Trust may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Redwood Trust looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy RWT Stock?

Does Redwood Trust have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.