Starwood Property Trust (NYSE:STWD) Hits New 52-Week Low - Here's What Happened

Key Points

• Starwood Property Trust shares hit a new 52-week low, trading as low as $12.21 and last quoted at $12.084, down from the prior close of $12.46.
• Analyst sentiment is mixed: recent firms issued both downgrades and price-target cuts, though the stock retains a consensus “Moderate Buy” rating with an average target of $18.70.
• The REIT reported quarterly EPS of $0.40, matching estimates, and paid a $0.48 quarterly dividend. The annualized dividend yield was approximately 15.9%, but its 325.42% payout ratio highlights potential sustainability concerns.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report)'s stock price reached a new 52-week low on Monday. The stock traded as low as $12.21 and last traded at $12.0840, with a volume of 628,456 shares trading hands. The stock had previously closed at $12.46.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on STWD. Wall Street Zen downgraded shares of 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 research report on Monday, August 17th. Zacks Research upgraded Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Weiss Ratings cut Starwood Property Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. Finally, JPMorgan Chase & Co. lowered their price objective on Starwood Property Trust from $19.00 to $18.50 and set an "overweight" rating for the company in a research report on Tuesday, August 18th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $18.70.

Starwood Property Trust Trading Down 3.1%

The company has a 50 day moving average of $14.94 and a 200-day moving average of $16.34. The stock has a market cap of $4.47 billion, a price-to-earnings ratio of 20.47, a price-to-earnings-growth ratio of 1.64 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.

Starwood Property Trust (NYSE:STWD - Get Free Report) last released its earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, meeting the consensus estimate of $0.40. The company 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%. Starwood Property Trust's revenue was up 15.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.43 EPS. On average, research analysts anticipate that Starwood Property Trust, Inc. will post 1.40 earnings per share for the current year.

Starwood Property Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.48 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 15.9%. Starwood Property Trust's payout ratio is 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

Large investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc raised 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 acquiring an additional 1,457 shares in the last quarter. Orion Capital Management LLC acquired a new position in Starwood Property Trust during the 2nd quarter worth $33,000. Bullseye Investment Management LLC acquired a new position in Starwood Property Trust during the 2nd quarter worth $34,000. CENTRAL TRUST Co grew its stake in Starwood Property Trust by 66.6% during the 1st quarter. CENTRAL TRUST Co now owns 2,493 shares of the real estate investment trust's stock worth $43,000 after purchasing an additional 997 shares in the last quarter. Finally, North Star Investment Management Corp. increased its holdings in Starwood Property Trust by 1,605.0% during the 1st quarter. North Star Investment Management Corp. now owns 3,410 shares of the real estate investment trust's stock worth $59,000 after purchasing an additional 3,210 shares during the period. 49.82% of the stock is owned by hedge funds and other institutional investors.

Starwood Property Trust Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.