Starwood Property Trust (NYSE:STWD) Hits New 12-Month Low - Should You Sell?

Key Points

• Starwood Property Trust shares hit a new 52-week low, trading as low as $12.90 and recently around $13.03, below both its 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $19.20; ratings range from Buy and Hold to Sell.
• The REIT reported quarterly EPS of $0.40, matching estimates, and announced a $0.48 quarterly dividend. The $1.92 annualized payout represents a high 14.8% yield, but its 325.42% payout ratio raises sustainability concerns.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $12.90 and last traded at $13.0290, with a volume of 10246125 shares. The stock had previously closed at $13.05.

Analysts Set New Price Targets

Several brokerages have issued reports on STWD. Citigroup reissued a "market outperform" rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Starwood Property Trust in a research report on Friday, August 7th. Wall Street Zen lowered shares of Starwood Property Trust from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. decreased 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 note on Tuesday, August 18th. Finally, Wells Fargo & Company set a $20.00 price objective on shares of Starwood Property Trust in a research report on Monday, August 17th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Starwood Property Trust has a consensus rating of "Moderate Buy" and a consensus price target of $19.20.

Starwood Property Trust Stock Down 0.6%

The company has a market cap of $4.80 billion, a price-to-earnings ratio of 21.99, a price-to-earnings-growth ratio of 1.72 and a beta of 1.01. 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 stock's fifty day moving average is $15.66 and its two-hundred day moving average is $16.67.

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

Starwood Property Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.92 annualized dividend and a dividend yield of 14.8%. Starwood Property Trust's payout ratio is presently 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

A number of institutional investors and hedge funds have recently bought and sold shares of STWD. Quantum Portfolio Management LLC boosted its holdings in Starwood Property Trust by 882,760.9% during the 1st quarter. Quantum Portfolio Management LLC now owns 112,176,302 shares of the real estate investment trust's stock worth $1,931,676,000 after acquiring an additional 112,163,596 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Starwood Property Trust in the second quarter valued at about $589,366,000. Norges Bank purchased a new stake in shares of Starwood Property Trust in the fourth quarter valued at about $75,177,000. Advisors Capital Management LLC bought a new position in shares of Starwood Property Trust during the second quarter valued at about $70,121,000. Finally, HighTower Advisors LLC lifted its position 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 valued at $49,902,000 after purchasing an additional 246,741 shares in the last quarter. 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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