Starwood Property Trust (NYSE:STWD) Reaches New 52-Week Low - Here's Why

Key Points

• Starwood Property Trust shares fell to a new 52-week low of $16.43, extending recent weakness in the stock.
• The company’s latest quarterly results missed analyst expectations, with EPS of $0.39 versus $0.42 expected and revenue of $205.55 million versus $496.25 million forecast.
• Despite the slump, analysts still hold a Moderate Buy consensus, with a target price of $19.70, and the stock offers a quarterly dividend of $0.48 per share, equal to an 11.6% annualized yield.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $16.43 and last traded at $16.4380, with a volume of 44729 shares traded. The stock had previously closed at $16.96.

Analyst Ratings Changes

A number of research analysts recently issued reports on STWD shares. 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. Bank of America restated a "neutral" rating and issued a $19.00 price target on shares of Starwood Property Trust in a report on Friday, March 6th. Keefe, Bruyette & Woods decreased their price target on shares of Starwood Property Trust from $20.00 to $19.50 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Zacks Research raised shares of Starwood Property Trust from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Finally, UBS Group initiated coverage on Starwood Property Trust in a research report on Tuesday, June 2nd. They issued a "buy" rating and a $20.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $19.70.

Starwood Property Trust Stock Performance

The company has a 50-day moving average of $17.33 and a 200-day moving average of $17.77. The company has a market cap of $6.13 billion, a PE ratio of 17.23, a PEG ratio of 2.22 and a beta of 0.99. 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 quarterly earnings results on Friday, May 8th. The real estate investment trust reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). The company had revenue of $205.55 million during the quarter, compared to analysts' expectations of $496.25 million. Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The company's quarterly revenue was up 22.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.45 earnings per share. As a group, analysts anticipate that Starwood Property Trust, Inc. will post 1.55 earnings per share for the current year.

Starwood Property Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 11.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Starwood Property Trust's dividend payout ratio (DPR) is presently 200.00%.

Insider Buying and Selling at Starwood Property Trust

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $17.13, for a total transaction of $120,132.69. Following the transaction, the director directly owned 168,152 shares in the company, valued at approximately $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 can be accessed through this link. 5.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Starwood Property Trust

Several hedge funds have recently modified their holdings of STWD. Peak Financial Advisors LLC raised its position in shares of Starwood Property Trust by 2.2% during the 1st quarter. Peak Financial Advisors LLC now owns 25,664 shares of the real estate investment trust's stock valued at $442,000 after buying an additional 559 shares in the last quarter. Brown Advisory Inc. lifted its holdings in shares of Starwood Property Trust by 1.3% during the 4th quarter. Brown Advisory Inc. now owns 47,432 shares of the real estate investment trust's stock worth $854,000 after acquiring an additional 600 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in Starwood Property Trust by 11.5% in the third quarter. CIBC Private Wealth Group LLC now owns 5,943 shares of the real estate investment trust's stock worth $115,000 after acquiring an additional 613 shares in the last quarter. Quadrant Capital Group LLC grew its position in Starwood Property Trust by 2.3% in the third quarter. Quadrant Capital Group LLC now owns 27,220 shares of the real estate investment trust's stock worth $527,000 after acquiring an additional 621 shares in the last quarter. Finally, Mutual Advisors LLC increased its stake in Starwood Property Trust by 1.8% in the fourth 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 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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