Starwood Property Trust (NYSE:STWD) Stock Price Target Lowered at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered Starwood Property Trust’s price target from $18.50 to $16.00 while maintaining an “outperform” rating, implying approximately 25.7% upside from the stock’s $12.72 price.
• Analyst sentiment remains generally positive, with five Buy ratings and three Hold ratings contributing to a “Moderate Buy” consensus and an average price target of $18.70.
• Starwood Property Trust reported quarterly earnings of $0.40 per share, matching estimates, while revenue rose 15.6% year over year; institutional investors and hedge funds own nearly 50% of the company.

Starwood Property Trust (NYSE:STWD - Get Free Report) had its target price cut by research analysts at Keefe, Bruyette & Woods from $18.50 to $16.00 in a report released on Friday, Benzinga reports. The firm presently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price indicates a potential upside of 25.74% from the stock's current price.

STWD has been the subject of several other research reports. JPMorgan Chase & Co. lowered their price target on shares of Starwood Property Trust from $19.00 to $18.50 and set an "overweight" rating for the company in a research report on Tuesday, August 18th. Zacks Research raised Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Citigroup reissued a "market outperform" rating on shares of Starwood Property Trust in a research report on Thursday, September 24th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Starwood Property Trust in a research report on Friday, August 7th. Finally, Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a research report on Monday, August 17th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Starwood Property Trust currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.70.

Starwood Property Trust Stock Down 0.2%

Shares of STWD stock traded down $0.03 during mid-day trading on Friday, hitting $12.72. The stock had a trading volume of 2,281,543 shares, compared to its average volume of 3,814,687. Starwood Property Trust has a 12-month low of $12.42 and a 12-month high of $19.06. The company has a debt-to-equity ratio of 3.47, a current ratio of 1.46 and a quick ratio of 1.46. The firm's 50-day moving average is $15.37 and its two-hundred day moving average is $16.54. The firm has a market capitalization of $4.71 billion, a P/E ratio of 21.59, a price-to-earnings-growth ratio of 1.67 and a beta of 1.01.

Starwood Property Trust (NYSE:STWD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, meeting the consensus estimate of $0.40. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%.The firm had revenue of $201.42 million during the quarter, compared to the consensus estimate of $521.67 million. During the same period in the previous year, the company posted $0.43 earnings per share. The firm's quarterly revenue was up 15.6% on a year-over-year basis. On average, analysts predict that Starwood Property Trust will post 1.4 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Starwood Property Trust

Several hedge funds have recently modified their holdings of the stock. Quantum Portfolio Management LLC grew its holdings in shares of Starwood Property Trust by 882,760.9% during the first quarter. Quantum Portfolio Management LLC now owns 112,176,302 shares of the real estate investment trust's stock valued at $1,931,676,000 after buying an additional 112,163,596 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Starwood Property Trust in the second quarter worth about $589,366,000. Advisors Capital Management LLC acquired a new stake in shares of Starwood Property Trust during the second quarter worth about $70,121,000. HighTower Advisors LLC lifted its holdings in shares of Starwood Property Trust by 8.8% during the second quarter. HighTower Advisors LLC now owns 3,046,542 shares of the real estate investment trust's stock worth $49,902,000 after purchasing an additional 246,741 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in Starwood Property Trust in the second quarter valued at approximately $38,498,000. Institutional investors and hedge funds own 49.82% of the company's stock.

About Starwood Property Trust

Starwood Property Trust, Inc NYSE: STWD is a real estate investment trust focused on commercial real estate finance. The company originates, acquires, finances and manages a range of real estate debt investments, including senior and subordinate mortgages, mezzanine loans, and other credit investments secured by commercial properties.

Its business also includes commercial real estate lending and servicing, residential lending, and infrastructure lending. Through these activities, Starwood Property Trust provides financing to property owners, developers and other real estate participants across multiple property types, including office, multifamily, industrial, hospitality and other commercial assets.

Founded in 2009, the company operates primarily in the United States and has also pursued lending and investment opportunities in Europe and other select international markets.

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