Starwood Property Trust, Inc. (NYSE:STWD) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Starwood Property Trust, with four buy ratings and three holds among seven analysts. The average 12-month price target is $19.70, above the reported share price of $16.67.
• Starwood Property Trust’s latest quarterly results missed expectations, with EPS of $0.39 versus the $0.42 consensus estimate, although revenue increased 22.5% year over year.
• The REIT paid a quarterly dividend of $0.48 per share, equivalent to an annualized $1.92 dividend and an 11.5% yield; its payout ratio stands at 200%.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) have received an average rating of "Moderate Buy" from the seven analysts that are currently covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $19.70.

Several equities analysts recently issued reports on the stock. UBS Group initiated coverage on shares of Starwood Property Trust in a report on Tuesday, June 2nd. They set a "buy" rating and a $20.00 price objective on the stock. JPMorgan Chase & Co. lowered their target price on Starwood Property Trust from $20.00 to $19.00 and set an "overweight" rating for the company in a report on Thursday, April 16th. Zacks Research raised Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Weiss Ratings downgraded Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Finally, Wall Street Zen upgraded Starwood Property Trust from a "sell" rating to a "hold" rating in a report on Saturday, July 18th.

Starwood Property Trust Stock Up 0.5%

NYSE:STWD opened at $16.67 on Wednesday. The company has a debt-to-equity ratio of 3.31, a current ratio of 1.57 and a quick ratio of 1.57. Starwood Property Trust has a 1-year low of $16.27 and a 1-year high of $20.84. The company has a 50-day moving average of $16.81 and a 200 day moving average of $17.50. The firm has a market cap of $6.18 billion, a PE ratio of 17.36, a price-to-earnings-growth ratio of 2.24 and a beta of 0.98.

Starwood Property Trust (NYSE:STWD - Get Free Report) last posted its earnings results on Friday, May 8th. The real estate investment trust reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The business had revenue of $205.55 million for the quarter, compared to analysts' expectations of $496.25 million. During the same period last year, the business posted $0.45 EPS. The company's revenue for the quarter was up 22.5% on a year-over-year basis. As a group, research analysts anticipate that Starwood Property Trust will post 1.51 EPS for the current fiscal year.

Starwood Property Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.92 dividend on an annualized basis and a yield of 11.5%. Starwood Property Trust's dividend payout ratio (DPR) is presently 200.00%.

Hedge Funds Weigh In On Starwood Property Trust

Large investors have recently added to or reduced their stakes in the company. CENTRAL TRUST Co boosted its holdings in shares of Starwood Property Trust by 154.4% in the 4th quarter. CENTRAL TRUST Co now owns 1,496 shares of the real estate investment trust's stock valued at $27,000 after buying an additional 908 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in Starwood Property Trust during the fourth quarter valued at approximately $28,000. Versant Capital Management Inc boosted its stake in 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. Flagship Harbor Advisors LLC acquired a new stake in Starwood Property Trust in the fourth quarter valued at approximately $53,000. Finally, North Star Investment Management Corp. grew its holdings in Starwood Property Trust by 1,605.0% in the first 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 last quarter. 49.82% of the stock is currently owned by 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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