Starwood Property Trust (NYSE:STWD) Hits New 1-Year Low - Here's What Happened

Key Points

• Starwood Property Trust shares fell to a new 52-week low of $14.15, trading below both their 50-day ($15.90) and 200-day ($16.79) moving averages.
• Analyst sentiment remains mixed but leans positive: five analysts rate the stock a Buy and three a Hold, producing a “Moderate Buy” consensus and an average price target of $19.20.
• The company declared a quarterly dividend of $0.48 per share, equating to a $1.92 annualized payout and a high 13.4% yield; institutional investors own nearly 50% of the stock, with BlackRock initiating a sizable position.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $14.15 and last traded at $14.3250, with a volume of 5929577 shares changing hands. The stock had previously closed at $14.36.

Analysts Set New Price Targets

STWD has been the topic of a number of research analyst reports. Zacks Research raised Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Keefe, Bruyette & Woods cut their price target on Starwood Property Trust from $19.00 to $18.50 and set an "outperform" rating for the company in a research note on Friday, August 7th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Starwood Property Trust in a research note on Friday, August 7th. Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a report on Monday, August 17th. Finally, Wall Street Zen lowered shares of Starwood Property Trust from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Starwood Property Trust presently has a consensus rating of "Moderate Buy" and an average target price of $19.20.

Starwood Property Trust Stock Performance

The company has a market capitalization of $5.30 billion, a PE ratio of 24.28, a price-to-earnings-growth ratio of 1.89 and a beta of 0.98. The stock's fifty day simple moving average is $15.90 and its 200-day simple moving average is $16.79. 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 (NYSE:STWD - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, meeting analysts' consensus estimates of $0.40. The business had revenue of $201.42 million during the quarter, compared to analyst estimates of $521.67 million. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The company's revenue was up 15.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.43 earnings per share. As a group, equities analysts predict that Starwood Property Trust, Inc. will post 1.4 earnings per share for the current year.

Starwood Property Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $0.48 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.92 annualized dividend and a dividend yield of 13.4%. Starwood Property Trust's dividend payout ratio (DPR) is 325.42%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new position in Starwood Property Trust during the 2nd quarter valued at $589,366,000. Blue Owl Capital Holdings LP bought a new stake in shares of Starwood Property Trust in the 2nd quarter worth about $3,216,000. Bank of America Corp DE acquired a new stake in shares of Starwood Property Trust in the 2nd quarter valued at about $19,537,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Starwood Property Trust in the 2nd quarter valued at about $4,488,000. Finally, Cetera Investment Advisers lifted its position in shares of Starwood Property Trust by 26.7% during the first quarter. Cetera Investment Advisers now owns 764,957 shares of the real estate investment trust's stock worth $13,173,000 after purchasing an additional 161,049 shares during the last quarter. Institutional investors and hedge funds own 49.82% of the company's stock.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust focused primarily on commercial real estate finance. The company originates, acquires, finances and manages a range of commercial real estate debt investments, including first mortgage loans, mezzanine loans, subordinated debt and securities backed by commercial properties.

Its activities also include infrastructure lending, residential lending and the ownership or management of commercial real estate investments. Through these businesses, Starwood Property Trust provides financing to property owners, developers and investors across sectors such as office, multifamily, industrial, hospitality and other commercial real estate categories.

Founded in 2009, the company operates primarily in the United States and also pursues investment opportunities in international markets, including Europe.

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