Starwood Property Trust (NYSE:STWD) Sets New 1-Year Low - Here's Why

Key Points

• Starwood Property Trust shares hit a new 52-week low, falling to $11.76 during Monday trading, compared with a prior close of $12.05.
• Analyst views were mixed, but MarketBeat reported a consensus “Moderate Buy” rating and an $18.50 price target; Weiss Ratings downgraded the stock to sell.
• The REIT beat quarterly earnings and revenue estimates, but revenue fell 22.8% year over year. Its $0.48 quarterly dividend equates to a 16% annualized yield, though the payout ratio is elevated at 325.42%.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) hit a new 52-week low during trading on Monday. The stock traded as low as $11.76 and last traded at $11.8750, with a volume of 2,117,489 shares traded. The stock had previously closed at $12.05.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on STWD shares. Weiss Ratings cut shares of Starwood Property Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Citigroup restated a "market outperform" rating on shares of Starwood Property Trust in a research note on Monday, October 26th. Wall Street Zen upgraded shares of Starwood Property Trust from a "sell" rating to a "hold" rating in a research note on Saturday. Zacks Research raised shares of Starwood Property Trust from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 20th. Finally, Wells Fargo & Company set a $20.00 price objective on Starwood Property Trust in a research note on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.50.

Starwood Property Trust Stock Down 0.1%

The firm has a market capitalization of $4.45 billion, a P/E ratio of -17.67, a PEG ratio of 1.67 and a beta of 1.03. The company has a debt-to-equity ratio of 3.95, a quick ratio of 1.46 and a current ratio of 1.48. The stock has a 50 day moving average of $13.77 and a 200-day moving average of $16.41.

Starwood Property Trust (NYSE:STWD - Get Free Report) last issued its earnings results on Friday, November 6th. The real estate investment trust reported $0.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.04. The firm had revenue of $545.85 million during the quarter, compared to analyst estimates of $531.80 million. Starwood Property Trust had a negative net margin of 11.35% and a positive return on equity of 7.77%. The company's quarterly revenue was down 22.8% on a year-over-year basis. During the same quarter last year, the business earned $0.40 earnings per share. Research analysts predict that Starwood Property Trust, Inc. will post 1.33 earnings per share for the current fiscal year.

Starwood Property Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 16.0%. The ex-dividend date was Wednesday, September 30th. Starwood Property Trust's payout ratio is currently 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in Starwood Property Trust in the second quarter valued at $589,366,000. Bank of America Corp DE bought a new stake in Starwood Property Trust during the second quarter worth about $19,537,000. QRG Capital Management Inc. lifted its stake in Starwood Property Trust by 101.4% during the second quarter. QRG Capital Management Inc. now owns 344,716 shares of the real estate investment trust's stock worth $5,646,000 after purchasing an additional 173,558 shares during the last quarter. Blue Owl Capital Holdings LP bought a new stake in Starwood Property Trust during the second quarter worth about $3,216,000. Finally, Adams Asset Advisors LLC boosted its holdings in shares of Starwood Property Trust by 48.1% in the 3rd quarter. Adams Asset Advisors LLC now owns 299,901 shares of the real estate investment trust's stock worth $4,049,000 after purchasing an additional 97,452 shares in the last quarter. Hedge funds and other institutional investors own 49.82% of the company's stock.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust focused on commercial real estate finance and related investments. The company originates, acquires and manages commercial mortgage loans and other debt investments secured by commercial properties, and also invests in commercial real estate and infrastructure-related lending.

Founded in 2009, Starwood Property Trust operates primarily in the United States and also conducts business in international markets, including Europe and Australia.

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.