Redwood Trust has a market capitalization of about $535 million.
Through Wednesday's close, the stock had shed 23% year to date.
Six of eight analysts rate the stock "strong buy" or "buy" and two rate it "hold"; median price target is $6, according to LSEG.
Shares fall as Redwood Trust plans convertible offering
Mortgage REIT Redwood Trust's RWT.N shares plunge 15.5% premarket on Thursday to $3.60, their lowest since May 2020, as it looks to raise capital.
Mill Valley, California-based Redwood Trust announces a private offering of $150 million in convertible bonds due 2030.
The company intends to use net offering proceeds to repurchase a portion of its 2027 notes and up to $20 million to repurchase its shares in privately negotiated transactions.
It plans to use the remaining proceeds for general purposes, including to fund its operating businesses, mortgage banking platforms, acquire assets for its investment portfolio, and potential acquisitions.
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