Will Redwood stock go up?

According to Danelfin AI, Redwood has today an AI Score of 4/10 (Hold rating), because its probability of beating the market in 3 months (49.26%) is -1.56% vs. the average probability (50.82%) of all US-listed stocks.

What is the target price for Redwood stock?

The Redwood target price is $4.49 (1Y), according to the average price target offered by analysts.

Is it a good time to buy, sell, or hold Redwood stock right now?

Redwood has today a Hold rating (AI Score 4/10), according to Danelfin AI. Its probability of beating the market in 3 months (49.26%) is -1.56% vs. the average probability (50.82%) of all US-listed stocks, based on our AI-powered analysis. You can find more details on whether Redwood stock is a good buy .

Is Redwood undervalued right now?

Based on analysts, the average price target downside for Redwood is 0.00% (1Y). According to Danelfin AI, Redwood has today an AI Score of 4/10 (Hold Rating).

What was the price range of Redwood stock over the past 12 months?

The Redwood stock price range over the past 12 months has been $4.49 - $6.68.

What is going on with Redwood stock in the last 3 months?

The Redwood stock performance in the last quarter has been -20.39%.

Does Redwood offer dividend payments?

Yes, Redwood stock dividend yield is 16.07%.

What is the current market capitalization of Redwood?

Redwood's market cap is $560.97M, as of 2026-07-03 08:00.

Redwood Trust Inc (RWT) AI Stock Analysis

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RWT AI-Powered Stock Analysis

AI Score Explanation

AI Score

Hold

Fundamental
Technical
Sentiment
Low Risk

According to Danelfin’s proprietary AI model, Redwood Trust Inc today receives an AI Score of 4/10, which translates to a Hold rating. The stock has a 49% probability of outperforming the market in the next 3 months, which is 2% lower than the average probability of any stock (51%). The top positive contributor is the Industry (GICS) signal, which adds +67.07% to the probability, indicating that being in the Mortgage Real Estate Investment Trusts (REITs) industry strongly boosts the stock's chances. Additionally, the Fear & Greed Index (CNN) at 31 (fear) contributes +13.48%, and the Analyst Lowest Price Upside signals add +11.35% and +10.40% respectively. On the negative side, the Technicals Impact (Long Tail) detracts -38.44%, the Performance (YTD) at -18.8% (bottom 30%) reduces probability by -18.24%, and the Chart Pattern (60d) detracts -15.81%. Other detractors include Alpha Last Day (bottom 20%) at -8.40%, Distance from KAMA (20d) (bottom 20%) at -8.34%, Alpha 1Y (bottom 30%) at -8.31%, and Forward Price-to-Earnings (bottom 10%) at -8.17%. Notable data points include the Forward Price-to-Earnings ratio of 4.43, which is in the bottom 10% — typically a sign of undervaluation, but here it detracts from the probability. The Tangible Shareholders' Equity of $957M is in the top 30%, yet it also detracts, suggesting that high equity may not be favorable for near-term outperformance. The Performance (YTD) of -18.8% (bottom 30%) and Alpha Last Day of -3.7% (bottom 20%) indicate recent weakness. Overall, while the industry tailwind is strong, the stock faces significant headwinds from technicals, recent performance, and valuation metrics, resulting in a below-average probability and a Hold rating.

AI Score Explanation

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Sentiment+82.92%
How analysts and the market view the stock

Momentum-68.12%
Direction and strength of recent price movements
Volatility-11.43%
How much the stock price tends to fluctuate
Valuation-4.82%
How the stock is priced relative to its fundamentals
Growth-0.10%
Expected pace of revenue and earnings expansion

RWT probability advantage of beating the market (3M):

-1.56%

Technical

Redwood (RWT) has a Technical Score of 7/10 because, according to only technical analysis, it has a probability advantage of +3.00% of beating the market (S&P500) in the next 3 months. This advantage is calculated as the difference between the average probability of any US-listed stock (50.73%) and the probability of RWT (53.73%) of overperforming the market in the next 3 months, as determined by Danelfin AI’s technical analysis.

Average probability of any US-listed stock of beating the market (3M)50.73%
RWT probability advantage of beating the market (only technical, 3M)+3.00%
RWT probability of beating the market (3M)53.73%

RWT probability advantage of beating the market (only technical, 3M): +3.00%

The AI-powered technical analysis of Redwood (RWT) is only based on the 29 technical features that had the greatest impact on stock performance during the last 12 months (alpha signals). These alpha signals explain the probability advantage of RWT:

Type	Alpha Signal	Probability Advantage Impact (3M)
Technical	Upgrade to Pro to unlock	-1.38%
Technical	Upgrade to Pro to unlock	+1.28%
Technical	Upgrade to Pro to unlock	-1.00%
Technical	Upgrade to Pro to unlock	+0.88%
Technical	Upgrade to Pro to unlock	+0.58%
Technical	Upgrade to Pro to unlock	+0.54%
Technical	Upgrade to Pro to unlock	+0.52%
Technical	Upgrade to Pro to unlock	+0.50%
Technical	Upgrade to Pro to unlock	+0.45%
Technical	Upgrade to Pro to unlock	-0.44%
Technical	Upgrade to Pro to unlock	+0.41%
Technical	Upgrade to Pro to unlock	-0.37%
Technical	Upgrade to Pro to unlock	+0.37%
Technical	Upgrade to Pro to unlock	+0.32%
Technical	Upgrade to Pro to unlock	-0.31%

Rest of Alpha Signals: +0.65%

RWT probability advantage of beating the market (only technical, 3M)Total:+3.00%
RWT Technical Score

Significant changes Vs previous day

RWT Trading Parameters

These suggested trading parameters for a 3-month horizon help improve risk management and decision-making.

Entry:$4.49
Horizon: 3 months
Stop Loss:$XXXXXPro (XXXXXPro) or AI Score < 4/10
Take Profit:$XXXXXPro (XXXXX
Pro
) or AI Score < 4/10

RWT Proven Hold Signal & Price Forecast

This is the price chart for RWT from January 2, 2026 until today. The chart indicates, in yellow, the 55 days when the stock received a Hold rating (hold signals, AI Score 4 to 6).

Forecast: In the section below, the central dotted line represents the most expected path, while the shaded area indicates the anticipated price range. This is based on previous Hold signals with a 90% confidence level.

Full Track Record

Unlock AI-powered forecast

Closing price (USD)
Hold signals

Forecast:

1 Month
3 Months
6 Months
1 Year

RWT Average Past Performance & Win Rate

Three months after its 1316 Hold signals since July 2026, RWT had an average performance of xxxxxx and a xxxxxx Win rate (positive performance).

1316 Past RWT Hold Signals	1 Month Later	3 Months Later	6 Months Later	1 Year Later
Average Performance				-4.74%
Average Alpha				-20.05%
Win Rate (% Positive Perf.)				37.53%
% Positive Alpha				18.09%

RWT Frequently Asked Questions

Will Redwood stock go up?
According to Danelfin AI, Redwood has today an AI Score of 4/10 (Hold rating), because its probability of beating the market in 3 months (49.26%) is -1.56% vs. the average probability (50.82%) of all US-listed stocks.
What is the target price for Redwood stock?
Is it a good time to buy, sell, or hold Redwood stock right now?
Is Redwood undervalued right now?
What was the price range of Redwood stock over the past 12 months?
What is going on with Redwood stock in the last 3 months?
Does Redwood offer dividend payments?
What is the current market capitalization of Redwood?

Redwood Trust Inc Company Profile

Redwood Trust Inc., along with its subsidiaries, functions as a specialized financial service provider within the boundaries of the United States. It conducts operations in three primary sectors: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. In its Residential Consumer Mortgage Banking sector, Redwood Trust manages a mortgage loan conduit that purchases residential loans from third-party founders, with the intent of future sale or securitization or shifting to its own investment portfolio. The provision of various financial instruments to mitigate risks related to residential loans is also a service this segment undertakes.

The company's Residential Investor Mortgage Banking segment controls a platform which originates business-related loans for investors involved in both single-family and multifamily residential properties along with bridge loans designated for forthcoming securitization, sale or transfer into their investment portfolio. Turning towards their Investment Portfolio segment, it involves investments in securities retained from both consumer and investor securitization activities as well as business purpose lending bridge loans. Moreover, it invests in other residential real-estate-backed security systems issued by external parties, alongside Freddie Mac K-Series multi-family loan securitizations and reperforming loan securitizations. Other housing-related investments include servicer advance investments and home equity investments.

As per federal income tax regulations, Redwood Trust has opted to be taxed under the category of Real Estate Investment Trust (REIT). Redwood Trust was established in 1994 and currently has its headquarters stationed in Mill Valley, California.

Sector:Financials
Country:United States
Industry:Mortgage Real Estate Investment Trusts (REITs)
Address:One Belvedere Place, Suite 300, Mill Valley
Employees:351
Website:redwoodtrust.com

Pros

Diversified investment portfolio across real estate credit

Securitization expertise in non-agency mortgage markets

Efficient access to capital markets as a REIT

Potential for interest rate spread income generation

Origination of agency-eligible residential loans

Cons

High sensitivity to interest rate fluctuations

Direct exposure to residential and commercial credit risk

Substantial regulatory compliance burden for financial products

Capital intensive business model for loan origination

Liquidity risk in non-agency mortgage-backed securities

Pros

Cons

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RWT Stock AI Analysis