Starwood Property Trust (NYSE:STWD) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Starwood Property Trust (NYSE: STWD) from “hold” to “strong sell,” while the broader analyst view remains mixed with a consensus rating of “Hold” and a target price of $19.70.
• The stock fell 1.1% to $17.13, trading near its 52-week low of $16.81 and below both its 50-day and 200-day moving averages.
• Recent earnings missed expectations, with quarterly EPS of $0.39 versus the $0.42 estimate and revenue of $205.55 million versus the much higher forecast of $496.25 million, despite year-over-year revenue growth.

Starwood Property Trust (NYSE:STWD - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Wednesday,Zacks.com reports.

A number of other equities analysts have also weighed in on the company. Wells Fargo & Company reduced their price objective on Starwood Property Trust from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Thursday, February 26th. Keefe, Bruyette & Woods reduced their price objective on Starwood Property Trust from $20.00 to $19.50 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Bank of America reiterated a "neutral" rating and set a $19.00 price objective on shares of Starwood Property Trust in a research note on Friday, March 6th. JPMorgan Chase & Co. reduced their price objective on Starwood Property Trust from $20.00 to $19.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Finally, Weiss Ratings cut shares of Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Starwood Property Trust has a consensus rating of "Hold" and a consensus target price of $19.70.

Starwood Property Trust Trading Down 1.1%

Shares of Starwood Property Trust stock opened at $17.13 on Wednesday. The firm has a fifty day moving average price of $17.60 and a 200 day moving average price of $17.95. The stock has a market cap of $6.35 billion, a PE ratio of 17.84, a price-to-earnings-growth ratio of 2.44 and a beta of 1.02. Starwood Property Trust has a 1 year low of $16.81 and a 1 year high of $21.05. 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 (NYSE:STWD - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The real estate investment trust reported $0.39 earnings per share for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). The company had revenue of $205.55 million for the quarter, compared to analysts' expectations of $496.25 million. Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The business's quarterly revenue was up 22.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.45 EPS. Equities research analysts predict that Starwood Property Trust will post 1.57 earnings per share for the current year.

Starwood Property Trust declared that its board has authorized a share repurchase plan on Thursday, February 26th that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the real estate investment trust to buy up to 6.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Starwood Property Trust news, Director Jeffrey G. Dishner sold 7,013 shares of Starwood Property Trust stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $17.13, for a total value of $120,132.69. Following the completion of the transaction, the director owned 168,152 shares of the company's stock, valued at approximately $2,880,443.76. The trade was a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 5.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in STWD. Vanguard Group Inc. grew its stake in Starwood Property Trust by 7.1% during the 3rd quarter. Vanguard Group Inc. now owns 32,976,364 shares of the real estate investment trust's stock valued at $638,752,000 after acquiring an additional 2,193,085 shares in the last quarter. Argosy Lionbridge Management LLC grew its stake in Starwood Property Trust by 286.1% during the 3rd quarter. Argosy Lionbridge Management LLC now owns 102,566 shares of the real estate investment trust's stock valued at $1,987,000 after acquiring an additional 76,000 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in Starwood Property Trust by 19.6% during the 3rd quarter. Envestnet Asset Management Inc. now owns 589,169 shares of the real estate investment trust's stock valued at $11,412,000 after acquiring an additional 96,484 shares in the last quarter. GraniteShares Advisors LLC purchased a new stake in Starwood Property Trust during the 4th quarter valued at about $2,617,000. Finally, Blair William & Co. IL grew its stake in Starwood Property Trust by 36.6% during the 3rd quarter. Blair William & Co. IL now owns 647,024 shares of the real estate investment trust's stock valued at $12,533,000 after acquiring an additional 173,462 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 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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