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

Key Points

• Starwood Property Trust (NYSE: STWD) hit a new 52-week low, trading as low as $16.60, as the stock continued to weaken below both its 50-day and 200-day moving averages.
• Recent analyst sentiment has turned cautious, with multiple firms cutting price targets and Zacks downgrading the stock to strong sell; the consensus rating is now Hold with an average price target of $19.70.
• The company recently missed earnings expectations, posting $0.39 EPS versus $0.42 expected, while still maintaining a 11.5% dividend yield and a newly authorized $400 million share buyback program.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The stock traded as low as $16.60 and last traded at $16.6470, with a volume of 3000715 shares traded. The stock had previously closed at $16.74.

Analyst Ratings Changes

A number of brokerages have weighed in on STWD. JPMorgan Chase & Co. decreased their price objective 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. Wells Fargo & Company dropped their target price on shares of Starwood Property Trust from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Thursday, February 26th. Bank of America reiterated a "neutral" rating and issued a $19.00 target price on shares of Starwood Property Trust in a research report on Friday, March 6th. Zacks Research downgraded shares of Starwood Property Trust from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 27th. Finally, Weiss Ratings lowered shares of Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $19.70.

Starwood Property Trust Stock Performance

The stock has a market cap of $6.17 billion, a PE ratio of 17.34, a P/E/G ratio of 2.37 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. The stock has a 50-day moving average of $17.43 and a 200 day moving average of $17.81.

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 analyst estimates 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% on a year-over-year basis. During the same period last year, the firm posted $0.45 EPS. Equities analysts predict that Starwood Property Trust, Inc. will post 1.55 EPS for the current fiscal year.

Starwood Property Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 11.5%. The ex-dividend date is Tuesday, June 30th. Starwood Property Trust's dividend payout ratio is presently 200.00%.

Starwood Property Trust announced that its board has initiated a stock repurchase program on Thursday, February 26th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the real estate investment trust to buy up to 6.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Starwood Property Trust

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 stock was sold at an average price of $17.13, for a total value of $120,132.69. Following the sale, the director owned 168,152 shares in the company, valued at $2,880,443.76. The trade was a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Starwood Property Trust

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quantum Portfolio Management LLC lifted its holdings in Starwood Property Trust by 882,760.9% during the 1st quarter. Quantum Portfolio Management LLC now owns 112,176,302 shares of the real estate investment trust's stock worth $1,931,676,000 after buying an additional 112,163,596 shares during the last quarter. Norges Bank acquired a new stake in shares of Starwood Property Trust during the 4th quarter worth about $75,177,000. Advisors Capital Management LLC raised its position 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 acquiring an additional 2,263,856 shares in the last quarter. Vanguard Group Inc. lifted its stake in Starwood Property Trust by 7.1% during the third quarter. Vanguard Group Inc. now owns 32,976,364 shares of the real estate investment trust's stock worth $638,752,000 after purchasing an additional 2,193,085 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in Starwood Property Trust in the third quarter valued at approximately $20,457,000. 49.82% of the stock is currently owned by hedge funds and other institutional investors.

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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