Redwood Trust, Inc. (RWT) Stock

Redwood Trust, Inc. (RWT) is a Real Estate stock trading at $4.81 (as of 2026-08-21), with a market capitalization of $602.29M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Redwood Trust, Inc. is a U.S. specialty finance company operating through Residential Mortgage Banking, Business Purpose Mortgage Banking, and an Investment Portfolio. It acquires and originates residential and business-purpose loans for sale, securitization, or transfer to its investment holdings, and invests in retained securities and related mortgage assets.

Understand Redwood Trust, Inc.: how it makes money

Redwood Trust provides specialty mortgage finance by buying residential mortgage loans from third-party originators and earning from selling, securitizing, or transferring those loans (and from its investment portfolio), while using derivative financial instruments to manage risks associated with residential loans.

It turns mortgage-lending into earnings by acquiring loans from third-party originators, then monetizing them through sales, securitization, or transfers into its investment portfolio, with derivatives used to help manage the risks tied to residential loan exposure.

Business quality (Weak): The business model and the three segment types are described, but no segment-level revenue breakdown is provided, so segment contribution to revenue cannot be quantified from the given facts.

Bull case

  • Diversified mortgage business lines: The company operates through three segments, including Residential Mortgage Banking and Business Purpose Mortgage Banking, plus an Investment Portfolio.
  • Risk management built into the residential model: Residential Mortgage Banking offers derivative financial instruments to manage risks associated with residential loans.

Bear case

  • Loss-making at the operating level in the latest period: Latest quarter operating margin is negative (-2.2%).
  • Earnings depend on execution of loan monetization: Residential Mortgage Banking acquires loans from third-party originators for subsequent sale, securitization, or transfer to the investment portfolio, so performance depends on those monetization outcomes.
Valuation — source: SEC EDGAR (first-party)
Price$4.81
Market Cap$602.29M
Price / Book0.63
Price / Sales0.48
DCF Value (model)$2.86
DCF Upside vs Price-40.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.18B
Net Margin-5.9%
Revenue Growth (YoY)31.2%
EPS Growth (YoY)-170.0%
Valuation vs Sector & Industry
Sector P/E (Real Estate)27.2
Industry P/E (Trading)35.3
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($113.09M)
Institutional Holders Tracked10
Congressional Trades (recent)2
Company
SectorReal Estate
IndustryTrading
CEOFred J. Matera
Employees283
CountryUS
IPO Date1995-08-04

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RWT earnings history · RWT institutional & insider holders · RWT KPIs & operating metrics · RWT financials · RWT investor presentations & press releases · RWT SEC filings · RWT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.