Andrew P. Stone, Chief Legal Officer at Redwood Trust Inc . (NYSE:RWT), recently executed several stock transactions, according to a recent SEC filing. On December 23, Stone sold 13,844 shares of common stock at an average price of $6.4964 per share, amounting to a total of $89,936. This sale was conducted under a pre-established 10b5-1 trading plan adopted in May 2024. The transaction occurred as Redwood Trust, currently valued at $877 million, trades at $6.62 with a P/E ratio of 12.11. InvestingPro subscribers can access detailed insider trading patterns and comprehensive financial metrics.
In a related transaction on the same day, Stone acquired 13,844 shares of common stock through the conversion of Deferred Stock Units, with a calculated transaction value of $93,723 at a price of $6.77 per share. These transactions are part of the Executive Deferred Compensation Plan, where deferred stock units are converted to common stock based on the fair market value on the transaction date. Following these transactions, Stone holds 149,671 shares of Redwood Trust's common stock. According to InvestingPro data, the company maintains a notable 10.88% dividend yield and has maintained dividend payments for 30 consecutive years. Based on InvestingPro's Fair Value analysis, the stock currently appears fairly valued.
In other recent news, Redwood Trust has announced a series of recent developments. The company disclosed compensatory arrangements for its top executives, including CEO Christopher J. Abate, as per a recent filing with the SEC. The compensation includes Deferred Stock Units (DSUs), cash-settled Restricted Stock Units (csRSUs), and Performance Stock Units (PSUs) under the company's incentive award plan.
On the earnings front, Redwood Trust reported mixed results for Q3 2024, with GAAP earnings decreasing slightly to $13 million, but earnings available for distribution (EAD) increasing to $25 million. The company also increased its common dividend by over 6% and reported improved mortgage banking performance.
In analyst news, JPMorgan (NYSE:JPM) downgraded Redwood Trust's stock from Overweight to Neutral due to concerns about how increased long-term rates might impact the company's credit performance and securities portfolio.
In other company news, Redwood Trust secured $2.2 billion in loans during Q3 and announced a joint venture with CPP Investments. The company aims to focus on non-agency housing finance solutions for 2025. These are among the recent developments for Redwood Trust.
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