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Redwood Trust, Inc.
$472M
Market Cap
20.4
P/E
2.55
PEG
-0.2%
ROCE
-6.4%
ROE
22.69
D/E
-25.3%
OPM
-43.0%
% from 52W High
16
α RS
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About

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through four segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. The CoreVest Mortgage Banking segment operates a platform that originates residential investor loans for subsequent securitization, sale, or transfer into the Redwood Investments portfolio or into joint ventures. This segment also includes various derivative financial instruments that we utilize to manage certain risks associated with our inventory of loans held for sale. The Redwood Investments segment primarily targets investments with sensitivity to housing credit risk, sourced through our operating platforms where control the underwriting and collateral review. Going forward, the Redwood Investments portfolio will focus on retained interests from the company’s own securitizations and other investment vehicles, rather than third-party securities, consistent with Redwood’s strategic shift toward internally originated investments. The Legacy Investments segment consists of assets no longer aligned with our core strategic objectives, including legacy unsecuritized bridge and term loans, residential re-performing loan securities, and other non-core legacy assets that are in the active process of sale, runoff, or other disposition as part of the accelerated strategic repositioning of our business model. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.

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⭐ Superinvestors Holding RWT
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 3.50M $3.6M 0.00% Mar 2026
Jim Simons Renaissance Technologies LLC 37.4K $210K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Mortgage banking volume exceeded $8 billion for the second straight quarter, with strong AI-driven efficiency gains and diversified product offerings. Core segments remained profitable, while legacy investments continued to be wound down, and capital efficiency improved across platforms.
Q1 2026 Q1 2026 2026-04-29
Achieved record mortgage banking volume and strong EAD growth despite a challenging market, driven by operational efficiencies, new capital partnerships, and robust segment performance. Outlook remains positive with further market share gains and capital redeployment expected.
Q4 2025 Q4 2025 2026-02-11
Record 2025 mortgage banking volumes and strong earnings growth were driven by capital reallocation, operational efficiency, and technology adoption. Outlook for 2026 is positive, with accelerating volumes, margin expansion, and continued capital efficiency.
Q3 2025 Q3 2025 2025-10-29
Achieved record loan originations and strong segment ROEs in Q3 2025, while reducing legacy asset exposure and expanding capital facilities. Non-GAAP core segment EAD rose to $0.20/share, and mortgage banking platforms saw robust growth and market share gains.
Q2 2025 Q2 2025 2025-07-30
Accelerated transition to a capital-light model led to a $100.2M GAAP net loss and a $0.90 drop in book value per share, driven by legacy asset wind-down. Core mortgage banking platforms delivered strong returns, with robust loan growth and distribution, while capital is being redeployed for higher earnings.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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