Starwood Property Trust (NYSE:STWD) Stock Falls 4.4% - Here's Why

Key Points

• Starwood Property Trust shares fell 4.4% to approximately $13.74, with trading volume substantially below the stock’s average daily volume.
• Despite the decline, analysts remain generally positive: five rate the stock a Buy and three a Hold, producing a “Moderate Buy” consensus and an average price target of $19.20.
• The REIT declared a quarterly dividend of $0.48 per share, equivalent to a 14.1% annualized yield; however, its dividend payout ratio is elevated at 325.42%.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) shares traded down 4.4% on Wednesday. The stock traded as low as $13.75 and last traded at $13.7350. 975,549 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 3,650,905 shares. The stock had previously closed at $14.36.

Wall Street Analysts Forecast Growth

STWD has been the topic of a number of research reports. Citigroup reiterated a "market outperform" rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. Wells Fargo & Company set a $20.00 target price on shares of Starwood Property Trust in a research report on Monday, August 17th. UBS Group initiated coverage on Starwood Property Trust in a research report on Tuesday, June 2nd. They set a "buy" rating and a $20.00 price target on the stock. Zacks Research upgraded Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Finally, JPMorgan Chase & Co. dropped their price target on 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. Five 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 MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $19.20.

Starwood Property Trust Price Performance

The business has a 50-day moving average of $15.86 and a two-hundred day moving average of $16.76. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 3.47. The firm has a market cap of $5.05 billion, a P/E ratio of 23.14, a price-to-earnings-growth ratio of 1.89 and a beta of 0.98.

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

Starwood Property Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid 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 14.1%. Starwood Property Trust's dividend payout ratio (DPR) is presently 325.42%.

Institutional Trading of Starwood Property Trust

A number of institutional investors and hedge funds have recently bought and sold shares of STWD. Quantum Portfolio Management LLC lifted 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 buying an additional 112,163,596 shares during the period. BlackRock Inc. bought a new stake in shares of Starwood Property Trust in the 2nd quarter valued at $589,366,000. Geode Capital Management LLC increased its position in shares of Starwood Property Trust by 2.4% during the fourth quarter. Geode Capital Management LLC now owns 6,406,419 shares of the real estate investment trust's stock worth $115,453,000 after buying an additional 148,740 shares during the period. Advisors Capital Management LLC acquired a new stake in shares of Starwood Property Trust during the second quarter worth $70,121,000. Finally, Norges Bank bought a new position in Starwood Property Trust during the fourth quarter worth $75,177,000. 49.82% of the stock is currently owned by institutional investors and hedge funds.

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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