Redwood Trust CEO Christopher Abate buys $383,900 in RWT stock

Redwood Trust CEO Christopher Abate recently made a significant investment in the company's stock. On September 15, 2026, Abate purchased 100,000 shares of Redwood Trust common stock, amounting to $383,900 at a price of $3.839 per share. This brought the CEO's ownership of Redwood Trust common stock to a total of 679,283 shares.

Despite a 25% decline in the stock's price over the past year, trading at $3.72, InvestingPro analysis suggests the stock is currently undervalued. The company boasts a substantial dividend yield of 19.35% and has consistently paid dividends for 32 consecutive years. Following the transaction, an amendment clarified that these shares were directly owned by Mr. Abate.

Additionally, Redwood Trust granted Mr. Abate Deferred Stock Units (DSUs) with varying grant dates, vesting schedules, and values, totaling $5.63, $6.64, and $7.79 per unit, respectively. Meanwhile, Redwood Trust's recent financial results for the second quarter of 2026 saw earnings per share of $0.25, slightly below expectations, while revenue significantly fell short of projections, representing a 40.4% gap from Wall Street's estimates.

This has led to adjustments in analyst recommendations, with UBS lowering its price target to $6.50 from $7.00 and Keefe, Bruyette & Woods reducing its target to $5.50 from $6.00.