Redwood Trust CEO buys 100K shares at $3.839
Rhea-AI Filing Summary
REDWOOD TRUST INC (RWT) Chief Executive Officer and director Christopher J. Abate reported an amended Form 4 reflecting a direct open-market purchase of 100,000 shares of common stock on September 15, 2026 at $3.839 per share, bringing his directly held common shares to 679,283. The amendment clarifies that these shares were directly owned by Mr. Abate at the time of the transaction. He also reports outstanding Deferred Stock Units convertible into common stock at exercise prices of $5.63, $6.64, and $7.79 with underlying shares of 115,896, 98,268, and 118,421 respectively, granted at fair market value under the 2014 Incentive Award Plan and subject to multi-year vesting schedules; no expiration date applies to these DSUs. No Rule 10b5-1 trading plan is indicated.
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Insights
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Insider Trade Summary
Net Buyer: 100,000 shares
Net Buy
4 txns
Insider
Abate Christopher J
Role
Chief Executive Officer
Bought
100,000 shs ($384K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Common Stock F1 | 100,000 | $3.839 | $384K |
| holding | Deferred Stock Units F2, F3, F4, F5 | -- | -- | -- |
| holding | Deferred Stock Units F2, F3, F6, F5 | -- | -- | -- |
| holding | Deferred Stock Units F2, F3, F7, F5 | -- | -- | -- |
Holdings After Transaction:
Common Stock — 679,283 shares (Direct);
Deferred Stock Units — 332,585 contracts (Direct)
Footnotes (7)
- F1. This amendment is being filed solely to correct the nature of ownership of the reported shares, which were directly owned by Mr. Abate at the time of the reported transaction.
- F2. This transaction relates to the grant of Deferred Stock Units.
- F3. Represents grant date fair value of the DSUs issued, based on the fair market value of RWT common stock on the transaction date under the 2014 Incentive Award Plan.
- F4. 25% vests 1/31/2027, 6.25% every quarter thereafter (beginning with 4/1/2027). Fully vested 12/11/2029.
- F5. No expiration date is applicable to deferred stock units.
- F6. 25% vests 1/31/2026, 6.25% every quarter thereafter (beginning with 4/1/2026). Fully vested 12/18/2028.
- F7. 25% vests 1/31/2025, 6.25% every quarter thereafter (beginning with 4/1/2025). Fully vested 12/14/2027.
Key Figures
Common shares purchased: 100,000 shares
Purchase price per share: $3.839 per share
Direct common shares after transaction: 679,283 shares
+4 more
7 metrics
Common shares purchased
100,000 shares
Open-market purchase on September 15, 2026
Purchase price per share
$3.839 per share
Price paid for common stock on September 15, 2026
Direct common shares after transaction
679,283 shares
Directly owned by Christopher J. Abate following the purchase
Deferred Stock Units underlying shares (grant 1)
115,896 shares
Underlying common shares at $5.63 DSU exercise price
Deferred Stock Units underlying shares (grant 2)
98,268 shares
Underlying common shares at $6.64 DSU exercise price
Deferred Stock Units underlying shares (grant 3)
118,421 shares
Underlying common shares at $7.79 DSU exercise price
DSU vesting start dates
January 31, 2025 / 2026 / 2027
Each DSU grant vests 25% on its respective January 31 date
Key Terms
Deferred Stock Units, grant date fair value, 2014 Incentive Award Plan, fair market value, +1 more
5 terms
Deferred Stock Units financial
"This transaction relates to the grant of Deferred Stock Units."
Deferred stock units are promises from a company to give an employee shares of stock at a future date, often after certain conditions are met or after leaving the company. They function like a form of delayed compensation, allowing employees to earn shares over time. For investors, they represent potential future ownership in the company, but do not provide immediate voting rights or dividends until the shares are actually received.
grant date fair value financial
"Represents grant date fair value of the DSUs issued, based on the fair"
The grant date fair value is the estimated dollar worth of a stock-based award (such as stock options or restricted shares) at the exact moment it is given to an employee or contractor. Investors care because companies use that value to record compensation expenses and to show how much potential ownership and earnings dilution those awards could create—think of it as the price tag placed on a gift card when it is handed over so the company can report the cost now.
2014 Incentive Award Plan financial
"fair market value of RWT common stock on the transaction date under the 2014 Incentive Award Plan."
fair market value financial
"fair market value of RWT common stock on the transaction date under the 2014"
The price a willing buyer and a willing seller would agree on for an asset or security when neither is under pressure and both have access to the same information. Think of it as the market’s neutral estimate of what something is worth, like the price two neighbors would settle on for a car after comparing similar listings. Investors care because fair market value guides buying and selling decisions, tax reporting, portfolio valuation, and how accurately company assets are reflected in financial statements.
vesting financial
"25% vests 1/31/2027, 6.25% every quarter thereafter"
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Redwood Trust (RWT) CEO Christopher J. Abate report in this amended Form 4?
He reported an amended Form 4 for a purchase of 100,000 common shares on September 15, 2026 at $3.839 per share, and clarified that the reported shares were directly owned by him at the time of the transaction.
Was the Redwood Trust (RWT) CEO’s stock purchase under a Rule 10b5-1 plan?
No. The filing’s Rule 10b5-1 checkbox is not marked as affirmative, and there is no disclosure in the footnotes that the September 15, 2026 purchase was made pursuant to a Rule 10b5-1 trading plan.
What Deferred Stock Units does the Redwood Trust (RWT) CEO report holding?
He reports Deferred Stock Units convertible into common stock at exercise prices of $5.63, $6.64, and $7.79 with underlying shares of 115,896, 98,268, and 118,421 respectively, all held directly.
How are the Redwood Trust (RWT) CEO’s Deferred Stock Units structured and vested?
The DSUs were granted at grant date fair value based on Redwood Trust’s common stock under the 2014 Incentive Award Plan. Footnotes state that each grant vests 25% on a specified January 31 date, then 6.25% quarterly until fully vested between 2027 and 2029.
Do the Deferred Stock Units reported by the Redwood Trust (RWT) CEO have an expiration date?
No. A footnote states that no expiration date is applicable to the Deferred Stock Units, even though they have defined vesting schedules and exercise prices tied to Redwood Trust common stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
