Starwood Property Trust (NYSE:STWD) Reaches New 52-Week Low - Should You Sell?

Key Points

• Starwood Property Trust shares hit a new 52-week low, falling to $15.47 and trading below both their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive: the consensus rating is “Moderate Buy,” with an average price target of $19.20 versus the current price near $15.67.
• The REIT reported quarterly earnings in line with estimates at $0.40 per share and maintains a high dividend yield of approximately 12.3%, though its payout ratio is elevated at 325.42%.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) shares reached a new 52-week low during trading on Thursday . The stock traded as low as $15.47 and last traded at $15.6650, with a volume of 790307 shares traded. The stock had previously closed at $15.87.

Wall Street Analysts Forecast Growth

STWD has been the subject of several 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. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Starwood Property Trust in a report on Friday, August 7th. UBS Group started coverage on shares of Starwood Property Trust in a research report on Tuesday, June 2nd. They issued a "buy" rating and a $20.00 price target for the company. Wall Street Zen cut shares of Starwood Property Trust from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Starwood Property Trust from $19.00 to $18.50 and set an "overweight" rating on the stock in a research report on Tuesday, August 18th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $19.20.

Starwood Property Trust Stock Performance

The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 3.47. The stock has a fifty day moving average price of $16.33 and a 200-day moving average price of $17.06. The firm has a market cap of $5.79 billion, a price-to-earnings ratio of 26.50, a price-to-earnings-growth ratio of 2.09 and a beta of 0.98.

Starwood Property Trust (NYSE:STWD - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, hitting the consensus estimate of $0.40. The firm 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 revenue for the quarter was up 15.6% on a year-over-year basis. During the same period last year, the company earned $0.43 earnings per share. On average, analysts expect that Starwood Property Trust, Inc. will post 1.4 earnings per share for the current fiscal year.

Starwood Property Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were issued a $0.48 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.92 annualized dividend and a dividend yield of 12.3%. Starwood Property Trust's payout ratio is presently 325.42%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in STWD. Quantum Portfolio Management LLC raised its position in Starwood Property Trust by 882,760.9% in the first 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 in the last quarter. BlackRock Inc. acquired a new position in shares of Starwood Property Trust during the 2nd quarter worth $589,366,000. California State Teachers Retirement System grew its stake in shares of Starwood Property Trust by 1,492.8% during the 2nd quarter. California State Teachers Retirement System now owns 6,729,051 shares of the real estate investment trust's stock worth $110,222,000 after purchasing an additional 6,306,591 shares during the period. Advisors Capital Management LLC purchased a new position in shares of Starwood Property Trust in the 2nd quarter valued at about $70,121,000. Finally, Norges Bank purchased a new position in shares of Starwood Property Trust in the 4th quarter valued at about $75,177,000. 49.82% of the stock is owned by hedge funds and other institutional investors.

Starwood Property Trust Company 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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