Starwood Property Trust (NYSE:STWD) Reaches New 12-Month Low - Here's What Happened

Key Points

• Starwood Property Trust shares fell to a new 52-week low of $16.21, below both its 50-day moving average of $16.80 and 200-day moving average of $17.48.
• Analysts maintain a cautiously positive outlook, with four Buy and three Hold ratings producing a consensus “Moderate Buy” rating and an average price target of $19.70, despite recent target reductions.
• The REIT reported quarterly EPS of $0.39, below the $0.42 consensus estimate, but continues to offer a sizable 11.9% dividend yield through its $0.48 quarterly payout.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $16.21 and last traded at $16.2240, with a volume of 648627 shares. The stock had previously closed at $16.52.

Analyst Ratings Changes

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

Starwood Property Trust Price Performance

The firm's 50-day moving average is $16.80 and its 200-day moving average is $17.48. The company has a market capitalization of $5.98 billion, a PE ratio of 16.81, a price-to-earnings-growth ratio of 2.25 and a beta of 0.98. The company has a quick ratio of 1.57, a current ratio of 1.57 and a debt-to-equity ratio of 3.31.

Starwood Property Trust (NYSE:STWD - Get Free Report) last released its earnings results 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 firm had revenue of $205.55 million during the quarter, compared to the consensus estimate of $496.25 million. Starwood Property Trust had a return on equity of 7.91% and a net margin of 18.11%.The business's quarterly revenue was up 22.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.45 EPS. Equities analysts predict that Starwood Property Trust, Inc. will post 1.51 earnings per share for the current fiscal year.

Starwood Property Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 11.9%. The ex-dividend date was Tuesday, June 30th. Starwood Property Trust's dividend payout ratio (DPR) is presently 200.00%.

Institutional Investors Weigh In On Starwood Property Trust

Several institutional investors and hedge funds have recently made changes to their positions in the company. CENTRAL TRUST Co increased 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 worth $27,000 after purchasing an additional 908 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Starwood Property Trust during the 4th quarter worth approximately $28,000. Versant Capital Management Inc lifted its position in shares of 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 purchased a new position in Starwood Property Trust in the 4th quarter worth approximately $53,000. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Starwood Property Trust by 169.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,266 shares of the real estate investment trust's stock worth $59,000 after buying an additional 2,053 shares in the last quarter. Institutional investors own 49.82% of the company's stock.

About Starwood Property Trust

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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