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

Key Points

• Starwood Property Trust (NYSE: STWD) hit a new 52-week low, trading as low as $16.71 and ending down about 1.6% on the day.
• Recent analyst actions have been mixed: UBS started coverage with a Buy and $20 target, while Zacks downgraded the stock to Strong Sell; the overall consensus remains Hold with a $19.70 target.
• The company missed first-quarter expectations, reporting $0.39 EPS versus $0.42 expected and revenue of $205.55 million versus a much higher forecast, even as it announced a $0.48 quarterly dividend and a $400 million share repurchase program.

Starwood Property Trust, Inc. (NYSE:STWD - Get Free Report) reached a new 52-week low during trading on Wednesday . The stock traded as low as $16.71 and last traded at $16.6370, with a volume of 2888095 shares traded. The stock had previously closed at $16.96.

Wall Street Analyst Weigh In

STWD has been the subject of a number of recent analyst reports. UBS Group initiated coverage on shares of Starwood Property Trust in a research report on Tuesday, June 2nd. They set a "buy" rating and a $20.00 target price on the stock. Zacks Research downgraded shares of Starwood Property Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 27th. JPMorgan Chase & Co. reduced 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 report on Thursday, April 16th. 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. Finally, Bank of America restated a "neutral" rating and issued a $19.00 target price on shares of Starwood Property Trust in a research note on Friday, March 6th. Four research 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $19.70.

Starwood Property Trust Stock Down 1.6%

The stock has a market cap of $6.19 billion, a price-to-earnings ratio of 17.38, a PEG ratio of 2.37 and a beta of 0.98. The business's 50 day moving average is $17.51 and its 200-day moving average is $17.87. The company has a debt-to-equity ratio of 3.31, a quick ratio of 1.57 and a current ratio of 1.57.

Starwood Property Trust (NYSE:STWD - Get Free Report) last issued its quarterly 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 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 prior year, the business posted $0.45 earnings per share. On average, sell-side analysts predict that Starwood Property Trust, Inc. will post 1.57 EPS for the current fiscal year.

Starwood Property Trust Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.92 annualized dividend and a yield of 11.5%. Starwood Property Trust's dividend payout ratio (DPR) is 200.00%.

Starwood Property Trust declared that its board has authorized a share 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 purchase up to 6.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In related news, Director Jeffrey G. Dishner sold 7,013 shares of Starwood Property Trust stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $17.13, for a total value of $120,132.69. Following the completion of the sale, the director owned 168,152 shares in the company, valued at approximately $2,880,443.76. This trade represents a 4.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 5.80% of the company's stock.

Hedge Funds Weigh In On Starwood Property Trust

Hedge funds and other institutional investors have recently bought and sold shares of the company. MassMutual Private Wealth & Trust FSB lifted its position in shares of Starwood Property Trust by 106.1% during 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 grew its stake in shares of 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 acquiring an additional 908 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Starwood Property Trust during the fourth quarter worth $28,000. Jackson Grant Investment Advisers Inc. acquired a new stake in shares of Starwood Property Trust in the third quarter valued at $29,000. Finally, FNY Investment Advisers LLC purchased a new position in Starwood Property Trust in the third quarter valued at $30,000. 49.82% of the stock is currently owned by hedge funds and other institutional investors.

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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