Starwood Property Trust, Inc. (NYSE:STWD) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Starwood Property Trust “Moderate Buy”: Five of eight covering brokerages recommend buying the stock, while two rate it a hold and one a sell. The average 12-month price target is $18.70, compared with a recent share price of $12.71.
• The company reported quarterly EPS of $0.40, matching consensus estimates, while revenue rose 15.6% year over year to $201.42 million. Analysts expect full-year EPS of approximately $1.40.
• Starwood declared a quarterly dividend of $0.48 per share, equivalent to an annualized $1.92 dividend and a 15.1% yield; however, its payout ratio is high at 325.42%.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight brokerages that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and five have assigned a buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $18.70.

A number of analysts have recently issued reports on the stock. Citigroup reissued a "market outperform" rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. Weiss Ratings cut shares of Starwood Property Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday. Zacks Research upgraded shares of Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Keefe, Bruyette & Woods reduced their price target on shares of Starwood Property Trust from $18.50 to $16.00 and set an "outperform" rating on the stock in a research note on Friday. Finally, Wells Fargo & Company set a $20.00 price objective on shares of Starwood Property Trust in a report on Monday, August 17th.

Starwood Property Trust Price Performance

Shares of STWD stock opened at $12.71 on Monday. Starwood Property Trust has a 52-week low of $12.42 and a 52-week high of $19.06. The company has a debt-to-equity ratio of 3.47, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a market capitalization of $4.70 billion, a P/E ratio of 21.54, a P/E/G ratio of 1.68 and a beta of 1.01. The stock has a 50 day moving average price of $15.31 and a 200 day moving average price of $16.51.

Starwood Property Trust (NYSE:STWD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 EPS 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 company had revenue of $201.42 million for the quarter, compared to the consensus estimate of $521.67 million. During the same quarter in the prior year, the company posted $0.43 EPS. Starwood Property Trust's quarterly revenue was up 15.6% on a year-over-year basis. As a group, sell-side analysts predict that Starwood Property Trust will post 1.40 earnings per share for the current year.

Starwood Property Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 15.1%. The ex-dividend date is Wednesday, September 30th. Starwood Property Trust's dividend payout ratio is currently 325.42%.

Hedge Funds Weigh In On Starwood Property Trust

A number of institutional investors have recently modified their holdings of STWD. BlackRock Inc. purchased a new stake in shares of Starwood Property Trust during the 2nd quarter worth $589,366,000. Bank of America Corp DE purchased a new position in Starwood Property Trust in the second quarter valued at about $19,537,000. Blue Owl Capital Holdings LP purchased a new position in Starwood Property Trust in the second quarter valued at about $3,216,000. QRG Capital Management Inc. grew its stake in Starwood Property Trust by 101.4% in the second quarter. QRG Capital Management Inc. now owns 344,716 shares of the real estate investment trust's stock valued at $5,646,000 after purchasing an additional 173,558 shares during the last quarter. Finally, The Manufacturers Life Insurance Company bought a new position in Starwood Property Trust in the second quarter worth about $4,488,000. 49.82% of the stock is owned by hedge funds and other institutional investors.

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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