Starwood Property Trust (NYSE:STWD) Sets New 1-Year Low - Here's Why

Key Points

• Starwood Property Trust hit a new 52-week low on Thursday, trading as low as $16.28, highlighting continued pressure on the stock.
• Recent analyst commentary has been mixed, but still generally positive: the consensus rating is Moderate Buy with a $19.70 target price, even after some firms trimmed price targets and downgraded their views.
• The company recently missed earnings expectations for the quarter, reporting $0.39 EPS versus the $0.42 estimate, while also offering a high dividend yield of 11.8% that comes with a very high payout ratio of 200%.

Shares of Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $16.28 and last traded at $16.2850, with a volume of 1578594 shares traded. The stock had previously closed at $16.48.

Wall Street Analyst Weigh In

STWD has been the subject of a number of analyst reports. JPMorgan Chase & Co. decreased their target price on shares of Starwood Property Trust from $20.00 to $19.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. UBS Group initiated coverage on shares of Starwood Property Trust in a research note on Tuesday, June 2nd. They set a "buy" rating and a $20.00 price objective for the company. Wall Street Zen upgraded Starwood Property Trust from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Keefe, Bruyette & Woods lowered their target price on Starwood Property Trust from $20.00 to $19.50 and set an "outperform" rating on the stock in a research report on Wednesday, May 13th. Finally, Zacks Research upgraded Starwood Property Trust from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Four investment 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 company has a consensus rating of "Moderate Buy" and a consensus target price of $19.70.

Starwood Property Trust Stock Performance

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's fifty day moving average is $16.85 and its two-hundred day moving average is $17.55. The firm has a market capitalization of $6.04 billion, a price-to-earnings ratio of 16.97, a P/E/G ratio of 2.24 and a beta of 0.98.

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

Starwood Property Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 11.8%. The ex-dividend date of this dividend was Tuesday, June 30th. Starwood Property Trust's payout ratio is 200.00%.

Institutional Trading of Starwood Property Trust

A number of hedge funds have recently made changes to their positions in STWD. AQR Capital Management LLC lifted its holdings in Starwood Property Trust by 70.1% during the 1st quarter. AQR Capital Management LLC now owns 36,396 shares of the real estate investment trust's stock valued at $720,000 after purchasing an additional 15,001 shares during the last quarter. NewEdge Advisors LLC increased its holdings in shares of Starwood Property Trust by 23.9% in the first quarter. NewEdge Advisors LLC now owns 19,606 shares of the real estate investment trust's stock valued at $388,000 after purchasing an additional 3,784 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Starwood Property Trust by 99.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 7,450 shares of the real estate investment trust's stock valued at $150,000 after purchasing an additional 3,721 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in shares of Starwood Property Trust by 42.7% in the second quarter. EverSource Wealth Advisors LLC now owns 5,535 shares of the real estate investment trust's stock valued at $111,000 after purchasing an additional 1,657 shares during the period. Finally, Baird Financial Group Inc. lifted its stake in shares of Starwood Property Trust by 3.3% during the 2nd quarter. Baird Financial Group Inc. now owns 113,306 shares of the real estate investment trust's stock worth $2,274,000 after buying an additional 3,577 shares during the last quarter. 49.82% of the stock is owned by institutional investors and hedge funds.

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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