IIn this series, we look at the most recent Dividend Channel “DividendRank” report and then select only companies that have been the subject of insider buying in the past six months. Executives and directors of a company tend to have a unique insider perspective on the company, and the only reason an insider would choose to take their hard-earned money and use it to buy stocks is in the open market is that he expects to make money – maybe they find the stock very undervalued, or maybe they see some exciting progress within the company, or maybe both. So when stocks come up that insiders buy and are also top ranked, investors are advised to take note. One of these companies is Redwood Trust Inc (ticker: RWT), which was bought by CFO Brooke Carillo.
On August 11, Carillo invested $ 250,100.00 in 20,500 shares of RWT, at a cost per share of $ 12.20. In trading on Wednesday, the shares were changing hands for as little as $ 12.51 per share, or 2.5% above the Carillo purchase price. Shares of Redwood Trust Inc are currently trading at -0.40% on this day. The chart below shows the one-year performance of RWT shares, compared to its 200-day moving average:
Looking at the chart above, RWT’s low point in its 52 week range is $ 7.11 per share, with $ 12.73 as a 52 week high, compared with a last trade of 12.55. $. For comparison, here’s a table showing the prices at which insider buys were recorded in the past six months:
|Purchased||Initiated||Title||Actions||Price / share||Value|
|08/11/2021||Brooke Carillo||Financial director||20,500||$ 12.20||250 $ 100.00|
The DividendRank report noted that among the hedging universe, RWT stocks displayed both attractive valuation metrics and strong profitability metrics. For example, the recent RWT stock price of $ 12.61 represents a price to book ratio of 1.1 and an annual dividend yield of 6.66%. -accounting ratio of 2.3. The report also cited the strong history of Redwood Trust Inc’s quarterly dividends and long-term favorable multi-year growth rates in key fundamental data points.
The report said: “Dividend investors who approach investing from a value perspective are generally more interested in finding the strongest, most profitable companies, which are also trading at an attractive valuation. This is what we seek to find by using our exclusive DividendRank formula, which ranks the hedging universe according to our various profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors. as a source of ideas that deserves further research. ”
The annualized dividend paid by Redwood Trust Inc is $ 0.84 / share, currently paid in quarterly installments, and its most recent ex-dividend date was 9/22/2021. Below is a chart of RWT’s long-term dividend history, which the report highlighted as being of key importance. Indeed, studying a company’s past dividend history can be of great help in judging whether the most recent dividend is likely to continue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.