Starwood Property Trust (NYSE:STWD) Given New $21.00 Price Target at Wells Fargo & Company

Starwood Property Trust (NYSE:STWD) had its target price trimmed by Wells Fargo & Company from $22.00 to $21.00 in a research report report published on Thursday,Benzinga reports. The firm currently has an outperform rating on the real estate investment trust’s stock.

Other research analysts have also issued research reports about the company. Weiss Ratings restated a “hold (c)” rating on shares of Starwood Property Trust in a research report on Wednesday, January 21st. Keefe, Bruyette & Woods dropped their price objective on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, November 12th. Finally, Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $20.38.

Starwood Property Trust Trading Up 2.1%

Shares of STWD stock opened at $18.09 on Thursday. The company has a current ratio of 1.68, a quick ratio of 1.33 and a debt-to-equity ratio of 3.10. The stock has a market capitalization of $6.70 billion, a price-to-earnings ratio of 15.59 and a beta of 1.13. Starwood Property Trust has a 12-month low of $16.59 and a 12-month high of $21.05. The stock’s 50-day moving average price is $18.20 and its 200-day moving average price is $18.78.

Starwood Property Trust (NYSE:STWD) last released its quarterly earnings results on Wednesday, February 25th. The real estate investment trust reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.01. Starwood Property Trust had a net margin of 22.32% and a return on equity of 8.16%. The company had revenue of $492.95 million for the quarter, compared to the consensus estimate of $469.53 million. During the same quarter in the prior year, the firm earned $0.48 earnings per share. Starwood Property Trust’s revenue was up 8.5% on a year-over-year basis. Equities research analysts predict that Starwood Property Trust will post 1.88 EPS for the current fiscal year.

Starwood Property Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st were issued a $0.48 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $1.92 dividend on an annualized basis and a yield of 10.6%. Starwood Property Trust’s payout ratio is currently 165.52%.

Starwood Property Trust declared that its Board of Directors has initiated a share repurchase program on Thursday, February 26th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to reacquire up to 6.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in STWD. Evolution Wealth Management Inc. purchased a new position in Starwood Property Trust in the 2nd quarter worth $25,000. MassMutual Private Wealth & Trust FSB increased its holdings in shares of 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 valued at $26,000 after purchasing an additional 746 shares during the period. CENTRAL TRUST Co raised 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 purchasing an additional 908 shares during the last quarter. Cloud Capital Management LLC acquired a new stake in shares of Starwood Property Trust during the third quarter worth about $29,000. Finally, Jackson Grant Investment Advisers Inc. acquired a new stake in shares of Starwood Property Trust during the third quarter worth about $29,000. 49.82% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Starwood Property Trust

Here are the key news stories impacting Starwood Property Trust this week:

• Positive Sentiment: Board authorized up to $400 million buyback over one year, funded with existing cash — reduces share count, supports the dividend and is a clear near-term capital-return catalyst. Read More.
• Positive Sentiment: Q4 results slightly beat expectations — GAAP and Distributable EPS/metrics topped consensus (reported distributable EPS $0.42 and revenue ~$493M), helping validate underlying earnings power despite a year-over-year EPS decline. Read More.
• Positive Sentiment: Strong capital deployment and liquidity profile: invested $12.7B in 2025, executed a record $4.4B of capital transactions, and ended the period with roughly $1.4B of liquidity — supports growth and flexibility. Company also maintained a long-running, consistent dividend. Read More.
• Neutral Sentiment: Analyst view shifted modestly: Wells Fargo trimmed its price target from $22 to $21 but kept an outperform rating — a slight headwind but still indicates upside from current levels. Read More.
• Negative Sentiment: Book value per share fell ~3.9% year-over-year and the company flagged higher expenses — BVPS erosion is a structural concern for an equity-focused REIT and may limit multiple expansion. Read More.
• Negative Sentiment: Mixed messaging from some call coverage/transcripts — while headline metrics beat, at least one transcript reported a miss on an EPS metric, which can create short-term investor uncertainty and volatility. Read More.

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.