Starwood Property Trust (NYSE:STWD) Sets New 12-Month Low - Time to Sell?

Key Points

• Starwood Property Trust shares fell to a new 52-week low of $15.50, below both their 50-day and 200-day moving averages, signaling recent price weakness.
• Analysts remain moderately bullish overall, with four Buy and three Hold ratings and an average price target of $19.20, though one firm downgraded the stock to Sell.
• The REIT reported in-line quarterly EPS of $0.40 and offers a high annualized dividend yield of 12.3%; however, its 325.42% payout ratio highlights potential dividend sustainability concerns.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The stock traded as low as $15.50 and last traded at $15.5050, with a volume of 1740353 shares traded. The stock had previously closed at $15.70.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on STWD. Wells Fargo & Company set a $20.00 target price on Starwood Property Trust in a research note on Monday, August 17th. JPMorgan Chase & Co. decreased their price target on shares of Starwood Property Trust from $19.00 to $18.50 and set an "overweight" rating on the stock in a research note on Tuesday, August 18th. UBS Group started coverage on shares of Starwood Property Trust in a report on Tuesday, June 2nd. They issued a "buy" rating and a $20.00 price target on the stock. Zacks Research upgraded shares of Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Finally, Wall Street Zen downgraded shares of Starwood Property Trust from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Four equities research 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 presently has an average rating of "Moderate Buy" and an average price target of $19.20.

Starwood Property Trust Price Performance

The company's 50 day moving average price is $16.44 and its 200 day moving average price is $17.17. 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 company has a market cap of $5.76 billion, a price-to-earnings ratio of 26.36, a P/E/G ratio of 2.08 and a beta of 0.98.

Starwood Property Trust (NYSE:STWD - Get Free Report) last announced its earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.40. The business had revenue of $201.42 million during the quarter, compared to analysts' expectations of $521.67 million. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The firm's revenue for the quarter was up 15.6% on a year-over-year basis. During the same quarter last year, the company posted $0.43 EPS. On average, equities research analysts predict 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 paid a $0.48 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 12.3%. Starwood Property Trust's payout ratio is 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

Large investors have recently bought and sold shares of the business. Quantum Portfolio Management LLC raised its position in Starwood Property Trust by 882,760.9% in the 1st quarter. Quantum Portfolio Management LLC now owns 112,176,302 shares of the real estate investment trust's stock valued at $1,931,676,000 after purchasing an additional 112,163,596 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Starwood Property Trust during the second quarter worth $589,366,000. California State Teachers Retirement System grew its holdings in shares of Starwood Property Trust by 1,492.8% during the second 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 last quarter. Advisors Capital Management LLC acquired a new stake in shares of Starwood Property Trust in the second quarter valued at $70,121,000. Finally, Norges Bank acquired a new stake in shares of Starwood Property Trust in the fourth quarter valued at $75,177,000. 49.82% of the stock is currently owned by institutional investors.

About Starwood Property Trust

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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