Should you buy Redwood Trust stock? (NYSE:RWT). Let's see how it does in our automated value investing analysis system.
(Redwood Trust stock price per share)
||RWT Fair Price
(based on intrinsic value)
|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|
|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.
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.
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.
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