Starwood Property Trust (NYSE:STWD) Hits New 52-Week Low - Here's What Happened

Key Points

• Starwood Property Trust shares fell 3.5% to a new 52-week low of $15.65, below both the 50-day average of $16.68 and the 200-day average of $17.41.
• Analyst sentiment remains moderately positive, with four Buy ratings and three Holds; however, JPMorgan and Keefe, Bruyette & Woods lowered their price targets. The average target is $19.70.
• The REIT reported quarterly EPS of $0.40, matching estimates, while revenue rose 15.6% year over year. It also maintains a quarterly dividend of $0.48, equivalent to a 12.3% annualized yield, though its payout ratio is elevated at 200%.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) reached a new 52-week low on Thursday . The company traded as low as $15.65 and last traded at $15.5750, with a volume of 1543359 shares. The stock had previously closed at $16.21.

Analyst Ratings Changes

Several equities analysts recently issued reports on STWD shares. JPMorgan Chase & Co. decreased their price target on Starwood Property Trust from $20.00 to $19.00 and set an "overweight" rating on the stock in a report on Thursday, April 16th. Weiss Ratings downgraded shares of Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. Keefe, Bruyette & Woods reduced their target price on shares of Starwood Property Trust from $20.00 to $19.50 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Wall Street Zen upgraded shares of Starwood Property Trust from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Finally, Zacks Research raised shares of Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $19.70.

Starwood Property Trust Trading Down 3.5%

The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 3.31. The company has a market capitalization of $5.80 billion, a P/E ratio of 16.26, a PEG ratio of 2.19 and a beta of 0.98. The business has a 50 day moving average price of $16.68 and a 200 day moving average price of $17.41.

Starwood Property Trust (NYSE:STWD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.40. The firm 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 18.11% and a return on equity of 7.91%. The business's revenue for the quarter was up 15.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 earnings per share. Analysts anticipate that Starwood Property Trust, Inc. will post 1.51 EPS for the current year.

Starwood Property Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 12.3%. The ex-dividend date of this dividend was Tuesday, June 30th. Starwood Property Trust's payout ratio is presently 200.00%.

Institutional Investors Weigh In On Starwood Property Trust

A number of hedge funds have recently modified their holdings of the business. Peak Financial Advisors LLC lifted its holdings in Starwood Property Trust by 2.2% during the first quarter. Peak Financial Advisors LLC now owns 25,664 shares of the real estate investment trust's stock valued at $442,000 after purchasing an additional 559 shares during the last quarter. Brown Advisory Inc. boosted its holdings in Starwood Property Trust by 1.3% in the 4th quarter. Brown Advisory Inc. now owns 47,432 shares of the real estate investment trust's stock worth $854,000 after buying an additional 600 shares during the period. CIBC Private Wealth Group LLC grew its stake in Starwood Property Trust by 11.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 5,943 shares of the real estate investment trust's stock valued at $115,000 after buying an additional 613 shares in the last quarter. Quadrant Capital Group LLC grew its stake in Starwood Property Trust by 2.3% in the 3rd quarter. Quadrant Capital Group LLC now owns 27,220 shares of the real estate investment trust's stock valued at $527,000 after buying an additional 621 shares in the last quarter. Finally, Mutual Advisors LLC raised its holdings in Starwood Property Trust by 1.8% during the 4th quarter. Mutual Advisors LLC now owns 36,608 shares of the real estate investment trust's stock valued at $659,000 after acquiring an additional 631 shares during the period. Institutional investors and hedge funds 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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