Starwood Property Trust (NYSE:STWD) Reaches New 12-Month Low - Time to Sell?

Key Points

• Starwood Property Trust (NYSE: STWD) hit a new 52-week low, trading as low as $16.76, as investors reacted to recent weakness in the shares.
• Analyst sentiment remains mixed: several firms trimmed price targets, Weiss Ratings downgraded the stock, and the consensus view is now Hold with an average target price of $19.70.
• The company recently reported disappointing quarterly results, missing EPS and revenue estimates, though it still pays a hefty $0.48 quarterly dividend and has authorized a $400 million share buyback.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $16.76 and last traded at $16.8550, with a volume of 1798322 shares traded. The stock had previously closed at $17.05.

Analysts Set New Price Targets

Several research analysts have commented on STWD shares. Weiss Ratings downgraded Starwood Property Trust from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. Wells Fargo & Company dropped their price target on Starwood Property Trust from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Thursday, February 26th. UBS Group assumed coverage on Starwood Property Trust in a report on Tuesday, June 2nd. They set a "buy" rating and a $20.00 price objective on the stock. 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. Finally, Keefe, Bruyette & Woods decreased their price objective on Starwood Property Trust from $20.00 to $19.50 and set an "outperform" rating on the stock in a report on Wednesday, May 13th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $19.70.

Starwood Property Trust Price Performance

The company has a market cap of $6.24 billion, a price-to-earnings ratio of 17.54, a price-to-earnings-growth ratio of 2.41 and a beta of 0.99. The company has a fifty day moving average price of $17.55 and a two-hundred day moving average price of $17.91. The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 3.31.

Starwood Property Trust (NYSE:STWD - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The real estate investment trust reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.03). The firm 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%.Starwood Property Trust's revenue for the quarter was up 22.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.45 EPS. As a group, equities research analysts anticipate that Starwood Property Trust, Inc. will post 1.57 EPS for the current fiscal year.

Starwood Property Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a $0.48 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.92 annualized dividend and a yield of 11.4%. Starwood Property Trust's payout ratio is currently 200.00%.

Starwood Property Trust announced that its Board of Directors has approved a stock buyback plan on Thursday, February 26th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to reacquire up to 6.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the business's 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 of the company's stock, valued at $2,880,443.76. The trade was a 4.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 5.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Starwood Property Trust

Institutional investors and hedge funds have recently bought and sold shares of the business. MassMutual Private Wealth & Trust FSB boosted its stake in Starwood Property Trust by 106.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 1,449 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 746 shares in the last quarter. CENTRAL TRUST Co boosted its stake in Starwood Property Trust by 154.4% in the fourth 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 acquired a new position in Starwood Property Trust in the fourth quarter worth $28,000. Jackson Grant Investment Advisers Inc. acquired a new position in Starwood Property Trust in the third quarter worth $29,000. Finally, FNY Investment Advisers LLC acquired a new position in Starwood Property Trust in the third quarter worth $30,000. 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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