Starwood Property Trust, Inc. (NYSE:STWD) Stock Has Average Price Target of $18.50 According to Brokerages

Key Points

• Analyst sentiment is moderately positive: Eight analysts give Starwood Property Trust a consensus “Moderate Buy” rating, with an average one-year price target of $18.50.
• STWD opened at $12.88, down 0.5%; its recent trading range was $11.84–$18.66. Recent analyst actions were mixed, including price-target cuts and downgrades.
• The REIT reported quarterly EPS of $0.40, matching estimates, while revenue rose 15.6% year over year. It paid a quarterly dividend of $0.48, equivalent to a 14.9% annualized yield.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight analysts that are presently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $18.50.

A number of research firms have recently commented on STWD. Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a research report on Monday, August 17th. Wall Street Zen downgraded shares of Starwood Property Trust from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Keefe, Bruyette & Woods lowered their target price on shares of Starwood Property Trust from $16.00 to $15.00 and set an "outperform" rating on the stock in a research note on Wednesday. Weiss Ratings downgraded shares of Starwood Property Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Starwood Property Trust from $19.00 to $18.50 and set an "overweight" rating on the stock in a report on Tuesday, August 18th.

Starwood Property Trust Stock Down 0.5%

Shares of STWD stock opened at $12.88 on Friday. The stock's 50 day simple moving average is $13.85 and its 200 day simple moving average is $16.44. The company has a debt-to-equity ratio of 3.47, a quick ratio of 1.46 and a current ratio of 1.46. Starwood Property Trust has a twelve month low of $11.84 and a twelve month high of $18.66. The company has a market capitalization of $4.77 billion, a price-to-earnings ratio of 21.84, a PEG ratio of 1.80 and a beta of 1.03.

Starwood Property Trust (NYSE:STWD - Get Free Report) last posted its earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, hitting 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 analyst estimates of $521.67 million. During the same period in the previous year, the company earned $0.43 EPS. The company's revenue for the quarter was up 15.6% on a year-over-year basis. As a group, research analysts predict that Starwood Property Trust will post 1.33 EPS for the current year.

Starwood Property Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 14.9%. The ex-dividend date of this dividend was Wednesday, September 30th. Starwood Property Trust's dividend payout ratio (DPR) is currently 325.42%.

Hedge Funds Weigh In On Starwood Property Trust

A number of institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc lifted its holdings in shares of Starwood Property Trust by 293.2% during the 2nd quarter. Versant Capital Management Inc now owns 1,954 shares of the real estate investment trust's stock worth $32,000 after acquiring an additional 1,457 shares during the period. Orion Capital Management LLC acquired a new stake in shares of Starwood Property Trust during the 2nd quarter valued at about $33,000. Bullseye Investment Management LLC bought a new stake in Starwood Property Trust in the second quarter valued at about $34,000. Northwestern Mutual Wealth Management Co. bought a new stake in Starwood Property Trust in the second quarter valued at about $63,000. Finally, Integrated Wealth Concepts LLC bought a new stake in Starwood Property Trust in the second quarter valued at about $68,000. 49.82% of the stock is currently owned by institutional investors.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust that focuses on commercial real estate finance and related investments. The company originates, acquires, and manages a range of real estate debt and equity investments, serving institutional borrowers, property owners, and developers.

Its portfolio and lending activities include senior mortgage loans, mezzanine debt, subordinated loans, preferred equity, commercial mortgage-backed securities, and other structured real estate investments.

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