Redwood, Ellie Mae shares surge on HW 30
Redwood beats 2Q consensus, Ellie Mae up for sale?
Ellie Mae rose more than 13%, while Redwood increased more than 11%. The index rose by 5 points, or half of a percent, in Thursday's trading. Year to date, the HW 30 has risen nearly 24 percent.
According to Seeking Alpha, Ellie Mae is considering a possible sale and may start soliciting bids in "the next two months."
Redwood is riding the wave of positive analyst reports after blasting consensus for its second-quarter earnings.
Yesterday, the real estate investment trust announced a reported net income for the second quarter of 2013 of $66 million, or $0.71 per fully diluted share. This compares to net income of $61 million, or $0.69 per fully diluted share, for the first quarter of 2013, and net income of $20 million, or $0.24 per fully diluted share, for the second quarter of 2012.
According to Bloomberg, FBR Capital said Redwood management did a “solid job of directing the business in a tough environment” and sees “significant upside to both earnings, dividends in years to come."