Redwood Trust, Inc. (RWT) Price Target Analysis
Updated Jun 18, 2026
Analyst Rating: Hold
Based on 23 analysts21.1% Below Target
RWT trades 21.1% below Wall Street's consensus target of $6.25.
Current Price$5.16
Average Target$6.25
Target
Current
Low$6.00
Median$6.25
High$6.50
Analyst Target Range
Forward P/E5.0x
(Value)
PEG Ratio—
Implied Growth+285.6%
(High Growth)
Analyst Spread8.0%
(High Agreement)
Price Forecast (1 Year)
Last 12 months price action with 12-month analyst target path
Consensus Scenario Assumptions
The base valuation assumes RWT achieves its forward estimates and maintains a stable P/E multiple of 5.0x. This scenario reflects the blended consensus of 23 Wall Street analysts, balancing both positive catalysts and macroeconomic headwinds over the next 12 months.
RWT Price Target Analysis
Updated June 21, 2026As of June 21, 2026, Redwood Trust, Inc. (RWT) has a Wall Street consensus price target of $6.25, based on estimates from 23 covering analysts. With the stock currently trading at $5.16, this represents a potential upside of +21.1%. The company has a market capitalization of $645M.
Analyst price targets range from a low of $6.00 to a high of $6.50, representing a 8% spread in expectations. The median target of $6.25 aligns closely with the consensus average. The tight target dispersion indicates high conviction among analysts.
The current analyst consensus rating is Hold, with 11 analysts rating the stock as a Buy or Strong Buy,12 rating it Hold, and 0 rating it Sell or Strong Sell. The mixed ratings reflect uncertainty about near-term direction.
From a valuation perspective, RWT trades at a trailing P/E of -8.2x and forward P/E of 5.0x. Analysts expect EPS to grow +285.6% over the next year.
Investment Context: Price targets represent analyst expectations for the next 12 months and should be considered alongside your own research. Targets are based on analysts' assumptions about earnings growth, margins, and market conditions which may change. For sector-specific context, view other Real Estate stocks.
Analyst Sentiment Comparison
Industry Peer AnalysisAvg Peer Upside
+9.9%
Industry Consensus
Avg Forward P/E
7.8x
(Value)
Peers with Coverage
9 / 10
Active Analyst Tracking
| Company | Market Cap | Price | Target | Upside Potential | Rating | Fwd P/E | Analysts |
|---|---|---|---|---|---|---|---|
 MFAMFA Financial, Inc. | $973M | $9.53 | $10.50 | +10.2% | Hold | 7.5x | 23 |
 MITTTPG Mortgage Investment Trust Inc | $252M | $7.94 | $9.42 | +18.6% | Buy | 7.3x | 18 |
 SACHSachem Capital Corp. | $45M | $0.93 | — | — | — | — | — |
 BXMTBlackstone Mortgage Trust, Inc. | $3.1B | $18.09 | $21.00 | +16.1% | Hold | 12.4x | 18 |
 RCReady Capital Corporation | $289M | $1.75 | $2.50 | +42.9% | Buy | — | 16 |
 NLYAnnaly Capital Management, Inc. | $16.0B | $22.21 | $24.33 | +9.5% | Buy | 7.4x | 28 |
 AGNCAGNC Investment Corp. | $11.7B | $10.38 | $11.13 | +7.2% | Hold | 6.7x | 35 |
 TWOTwo Harbors Investment Corp. | $1.3B | $12.32 | $13.50 | +9.6% | Hold | 10.8x | 22 |
 IVRInvesco Mortgage Capital Inc. | $575M | $8.00 | $7.50 | -6.3% | Hold | 3.8x | 20 |
 CIMChimera Investment Corporation | $1.1B | $13.28 | $10.75 | -19.1% | Hold | 6.2x | 16 |
RWT — Frequently Asked Questions
Quick answers to the most common questions about buying RWT stock.
What is the RWT stock price target for 2026?
The consensus Wall Street price target for RWT is $6.25, representing 21.1% upside from the current price of $5.16. With 23 analysts covering the stock, this strong upside suggests significant value not yet reflected in today's share price.
Is RWT a buy, sell, or hold?
RWT has a consensus rating of "Hold" based on 23 Wall Street analysts. The rating breakdown is mixed, with 12 Hold ratings making up the largest segment. The consensus 12-month price target of $6.25 implies 21.1% upside from current levels.
Is RWT stock overvalued or undervalued?
With a forward P/E of 5.0239x, RWT trades at a relatively low valuation. The consensus target of $6.25 implies 21.1% appreciation, suggesting meaningful undervaluation.
How high can RWT stock go?
The most bullish Wall Street analyst has a price target of $6.5 for RWT, while the most conservative target is $6. The consensus of $6.25 represents the median expectation. These targets typically reflect 12-month expectations.
How many analysts cover RWT stock?
RWT is well covered by analysts, with 23 analysts providing price targets and ratings. Of these, 1 have Strong Buy ratings, 10 have Buy ratings, 12 recommend Hold, and 0 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.
What is the RWT stock forecast?
The 12-month RWT stock forecast based on 23 Wall Street analysts shows a consensus price target of $6.25, with estimates ranging from $6 (bear case) to $6.5 (bull case). The median consensus rating is "Hold".
What is RWT's forward P/E ratio?
RWT trades at a forward P/E ratio of 5.0x based on next-twelve-months earnings estimates. The higher forward P/E suggests near-term earnings pressure. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.
Should I buy RWT stock?
Wall Street analysts are very optimistic on RWT, with a "Hold" consensus rating and $6.25 price target (21.1% upside). 11 of 23 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.
Why do RWT price targets vary so much?
RWT analyst price targets range from $6 to $6.5, a 8% tight range reflecting strong analyst consensus. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $6.25 consensus represents the middle ground.
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