Starwood Property Trust (NYSE:STWD) Sets New 1-Year Low – Time to Sell?

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

Analyst Ratings Changes

STWD has been the subject of a number of research reports. Weiss Ratings downgraded Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Keefe, Bruyette & Woods reduced their price objective on Starwood Property Trust from $20.00 to $19.50 and set an “outperform” rating on the stock in a research note on Wednesday, May 13th. UBS Group started coverage on Starwood Property Trust in a report on Tuesday, June 2nd. They set a “buy” rating and a $20.00 target price for the company. Wells Fargo & Company cut their price target on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, February 26th. Finally, Bank of America reaffirmed a “neutral” rating and set a $19.00 price target on shares of Starwood Property Trust in a research report on Friday, March 6th. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $19.70.

Starwood Property Trust Stock Down 0.2%

The firm has a 50-day simple moving average of $17.54 and a 200 day simple moving average of $17.90. The company has a debt-to-equity ratio of 3.31, a current ratio of 1.57 and a quick ratio of 1.57. The company has a market capitalization of $6.35 billion, a PE ratio of 17.84, a price-to-earnings-growth ratio of 2.38 and a beta of 0.98.

Starwood Property Trust (NYSE:STWD) last issued its earnings results 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 company had revenue of $205.55 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 22.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.45 EPS. On average, research analysts predict that Starwood Property Trust, Inc. will post 1.57 EPS for the current fiscal year.

Starwood Property Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were given 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 11.2%. Starwood Property Trust’s dividend payout ratio (DPR) is 200.00%.

Starwood Property Trust announced that its board has initiated a share repurchase plan on Thursday, February 26th that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the real estate investment trust to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Starwood Property Trust

In other news, Director Jeffrey G. Dishner sold 7,013 shares of the company’s stock in a transaction 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 transaction, the director directly owned 168,152 shares in the company, valued at approximately $2,880,443.76. This represents a 4.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Starwood Property Trust

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