Redwood Trust CEO buys 100K shares at $3.839
Redwood Trust’s CEO reported a sizable open-market share purchase held via a trust, along with multi-year deferred stock unit awards tied to common stock.
Rhea-AI Filing Summary
REDWOOD TRUST INC (RWT) Chief Executive Officer and director Christopher J. Abate reported an open‑market purchase of 100,000 shares of common stock on September 15, 2026 at $3.839 per share, held indirectly by a trust, bringing his indirect common‑stock holdings to 679,283 shares. He also reported deferred stock unit awards convertible into 115,896, 98,268 and 118,421 shares of common stock at grant‑date fair values of $5.63, $6.64 and $7.79 per underlying share, which vest in tranches between 2025 and 2029, and no Rule 10b5‑1 trading plan is reported.
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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 | 100,000 | $3.839 | $384K |
| holding | Deferred Stock Units F1, F2, F3, F4 | -- | -- | -- |
| holding | Deferred Stock Units F1, F2, F5, F4 | -- | -- | -- |
| holding | Deferred Stock Units F1, F2, F6, F4 | -- | -- | -- |
Holdings After Transaction:
Common Stock — 679,283 shares (Indirect, by Trust);
Deferred Stock Units — 332,585 contracts (Direct)
Footnotes (6)
- F1. This transaction relates to the grant of Deferred Stock Units.
- F2. 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.
- F3. 25% vests 1/31/2027, 6.25% every quarter thereafter (beginning with 4/1/2027). Fully vested 12/11/2029
- F4. No expiration date is applicable to deferred stock units.
- F5. 25% vests 1/31/2026, 6.25% every quarter thereafter (beginning with 4/1/2026). Fully vested 12/18/2028
- F6. 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
Indirect holdings after transaction: 679,283 shares
+3 more
6 metrics
Common shares purchased
100,000 shares
Open-market purchase on September 15, 2026
Purchase price per share
$3.839 per share
Common stock bought on September 15, 2026
Indirect holdings after transaction
679,283 shares
Common stock held indirectly by trust after purchase
Deferred stock units underlying shares (grant 1)
115,896 shares
DSUs tied to common stock at $5.63 grant-date fair value
Deferred stock units underlying shares (grant 2)
98,268 shares
DSUs tied to common stock at $6.64 grant-date fair value
Deferred stock units underlying shares (grant 3)
118,421 shares
DSUs tied to common stock at $7.79 grant-date fair value
Key Terms
Deferred Stock Units, grant date fair value, fair market value, 2014 Incentive Award Plan
4 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 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.
fair market value financial
"based on the fair market value of RWT common stock on the"
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.
2014 Incentive Award Plan financial
"on the transaction date under the 2014 Incentive Award Plan."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did RWT’s CEO Christopher Abate report buying in this Form 4?
He reported purchasing 100,000 shares of REDWOOD TRUST INC common stock on September 15, 2026 at $3.839 per share, held indirectly by a trust, increasing his indirect common‑stock holdings to 679,283 shares.
Were the RWT CEO’s transactions made under a Rule 10b5-1 trading plan?
No. The filing indicates that no Rule 10b5-1 trading plan is reported for these transactions, meaning the reported purchase was not affirmatively designated as made under such a pre‑arranged plan.
What deferred stock units tied to RWT common stock does the CEO report?
He reports deferred stock unit awards relating to 115,896, 98,268, and 118,421 underlying RWT common shares, with grant‑date fair values of $5.63, $6.64, and $7.79 per underlying share, respectively.
What are the vesting schedules for the RWT deferred stock units reported?
Footnotes state one DSU grant vests 25% on January 31, 2025 with 6.25% quarterly thereafter until December 14, 2027, others vest 25% on January 31, 2026 and January 31, 2027 with 6.25% quarterly thereafter until December 18, 2028 and December 11, 2029.
Do REDWOOD TRUST INC deferred stock units have an expiration date?
No. A footnote states explicitly that no expiration date is applicable to deferred stock units reported in this Form 4.
AI-generated analysis. How Rhea-AI works. Not financial advice.
