Starwood Property Trust (NYSE:STWD) Price Target Cut to $18.50 by Analysts at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Starwood Property Trust’s price target from $19.00 to $18.50 but maintained an “outperform” rating, implying roughly 16% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $19.50.
• Starwood reported quarterly earnings of $0.40 per share, in line with estimates, while revenue increased 15.6% year over year to approximately $201.4 million. However, earnings declined from $0.43 a year earlier and remained below the company’s $0.48 dividend.
• Institutional investors own nearly 49.8% of the stock, with several funds increasing their positions. Despite new investments and improving real estate fundamentals, investors remain focused on rising interest costs, dividend sustainability and uncertainty surrounding the integration or potential spinoff of the net-lease portfolio.

Starwood Property Trust (NYSE:STWD - Get Free Report) had its target price reduced by equities research analysts at Keefe, Bruyette & Woods from $19.00 to $18.50 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' price target would suggest a potential upside of 16.16% from the company's previous close.

Several other research analysts have also weighed in on the company. Weiss Ratings lowered Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. JPMorgan Chase & Co. decreased their target price 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. Zacks Research upgraded Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. UBS Group started coverage on shares of Starwood Property Trust in a research note on Tuesday, June 2nd. They issued a "buy" rating and a $20.00 price objective for the company. Finally, 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. 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, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $19.50.

Starwood Property Trust Trading Down 1.8%

NYSE:STWD opened at $15.93 on Friday. Starwood Property Trust has a 52 week low of $15.51 and a 52 week high of $20.84. The company has a debt-to-equity ratio of 3.31, a quick ratio of 1.57 and a current ratio of 1.57. The firm's fifty day moving average is $16.65 and its 200-day moving average is $17.39. The firm has a market cap of $5.90 billion, a P/E ratio of 16.59, a P/E/G ratio of 2.19 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 for the quarter, hitting analysts' consensus estimates of $0.40. The business had revenue of $201.42 million during the quarter, compared to the consensus estimate of $521.67 million. Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. Starwood Property Trust's quarterly revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.43 earnings per share. Equities analysts expect that Starwood Property Trust will post 1.51 earnings per share for the current year.

Institutional Investors Weigh In On Starwood Property Trust

A number of hedge funds have recently added to or reduced their stakes in STWD. Cetera Investment Advisers increased its holdings in Starwood Property Trust by 26.7% during the first quarter. Cetera Investment Advisers now owns 764,957 shares of the real estate investment trust's stock worth $13,173,000 after buying an additional 161,049 shares during the last quarter. Kestra Advisory Services LLC boosted its stake in Starwood Property Trust by 63.3% in the first quarter. Kestra Advisory Services LLC now owns 331,004 shares of the real estate investment trust's stock valued at $5,700,000 after acquiring an additional 128,300 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Starwood Property Trust by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 6,406,419 shares of the real estate investment trust's stock valued at $115,453,000 after acquiring an additional 148,740 shares during the period. Norges Bank bought a new position in shares of Starwood Property Trust during the 4th quarter valued at approximately $75,177,000. Finally, Advisors Capital Management LLC increased its stake in shares of Starwood Property Trust by 157.3% during the 4th quarter. Advisors Capital Management LLC now owns 3,702,935 shares of the real estate investment trust's stock worth $66,690,000 after purchasing an additional 2,263,856 shares during the last quarter. Institutional investors and hedge funds own 49.82% of the company's stock.

Trending Headlines about Starwood Property Trust

Here are the key news stories impacting Starwood Property Trust this week:

• Positive Sentiment: Starwood Property Trust reported second-quarter distributable earnings of $0.40 per diluted share, matching consensus estimates. Revenue rose 15.6% year over year to approximately $201.4 million, while management cited improving real estate fundamentals. Starwood Property Trust Q2 earnings in line as real estate fundamentals improve
• Positive Sentiment: The REIT invested $2.5 billion during the quarter and $6.7 billion through July, reaching record total assets of $31.8 billion and commercial lending assets of $17.3 billion. It also repurchased $30 million of common shares during the first six months of the year. Starwood Property Trust Reports Results for Quarter Ended June 30, 2026
• Neutral Sentiment: Starwood declared its regular $0.48-per-share dividend and earned a Nareit Gold Investor CARE Award for the 10th time in 12 years, supporting its income-investment profile.
• Negative Sentiment: Distributable earnings declined from $0.43 per share a year earlier and remained below the $0.48 dividend, keeping dividend sustainability concerns in focus. GAAP net income was only $6.6 million, or approximately $0.01 per share. Starwood Property Trust Q2 Distributable Earnings Fall; Revenue Rises
• Negative Sentiment: Investors remain concerned about rising interest expense and the integration of the net lease acquisition. Management has indicated a potential spinoff if the portfolio’s value cannot be realized internally, adding uncertainty to the outlook. Starwood Property Trust Q2 Preview: All Eyes On Net Lease

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source