BlackRock Inc. Makes New Investment in Starwood Property Trust, Inc. $STWD

Key Points

• BlackRock acquired 35.98 million shares of Starwood Property Trust in the second quarter, valued at approximately $589.4 million and representing a 9.7% stake.
• Starwood reported quarterly EPS of $0.40, matching analysts’ estimates, while revenue rose 15.6% year over year to $201.4 million.
• The REIT maintains a $0.48 quarterly dividend, equivalent to a 11.7% annualized yield, though its payout ratio is high at 325.4%. Analysts’ average price target is $19.20 versus the stock’s $16.39 opening price.

BlackRock Inc. bought a new stake in shares of Starwood Property Trust, Inc. (NYSE:STWD - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 35,980,845 shares of the real estate investment trust's stock, valued at approximately $589,366,000. BlackRock Inc. owned about 9.70% of Starwood Property Trust at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. CENTRAL TRUST Co lifted its holdings in shares of Starwood Property Trust by 154.4% during the 4th quarter. CENTRAL TRUST Co now owns 1,496 shares of the real estate investment trust's stock worth $27,000 after acquiring an additional 908 shares during the period. Los Angeles Capital Management LLC acquired a new stake in Starwood Property Trust during the 4th quarter valued at $28,000. Versant Capital Management Inc increased its stake in shares of Starwood Property Trust by 293.2% in the second quarter. Versant Capital Management Inc now owns 1,954 shares of the real estate investment trust's stock valued at $32,000 after buying an additional 1,457 shares in the last quarter. North Star Investment Management Corp. increased its position in Starwood Property Trust by 1,605.0% in the 1st quarter. North Star Investment Management Corp. now owns 3,410 shares of the real estate investment trust's stock valued at $59,000 after acquiring an additional 3,210 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in shares of Starwood Property Trust by 169.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,266 shares of the real estate investment trust's stock valued at $59,000 after purchasing an additional 2,053 shares in the last quarter. Institutional investors own 49.82% of the company's stock.

Starwood Property Trust Price Performance

Starwood Property Trust stock opened at $16.39 on Monday. Starwood Property Trust, Inc. has a one year low of $15.51 and a one year high of $20.84. The stock's fifty day moving average price is $16.53 and its two-hundred day moving average price is $17.26. 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 has a market cap of $6.07 billion, a PE ratio of 27.78, a price-to-earnings-growth ratio of 2.16 and a beta of 0.98.

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 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.40. The firm had revenue of $201.42 million for the quarter, compared to the consensus estimate of $521.67 million. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The business's revenue for the quarter was up 15.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.43 earnings per share. As a group, research analysts expect that Starwood Property Trust, Inc. will post 1.4 EPS for the current fiscal year.

Starwood Property Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $0.48 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.92 annualized dividend and a yield of 11.7%. Starwood Property Trust's dividend payout ratio (DPR) is 325.42%.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Zacks Research raised Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Wall Street Zen lowered Starwood Property Trust from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a report on Monday, August 17th. Weiss Ratings reissued a "hold (c-)" rating on shares of Starwood Property Trust in a research report on Friday, August 7th. Finally, UBS Group initiated coverage on shares of Starwood Property Trust in a research note on Tuesday, June 2nd. They issued a "buy" rating and a $20.00 price target on the stock. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $19.20.

Starwood Property Trust Profile

Starwood Property Trust NYSE: STWD is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company's portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.

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