Starwood Property Trust (NYSE:STWD) Sets New 12-Month Low – Should You Sell?

Starwood Property Trust, Inc. (NYSE:STWD)’s stock price reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $14.88 and last traded at $14.8850, with a volume of 853528 shares traded. The stock had previously closed at $15.10.

Wall Street Analysts Forecast Growth

STWD has been the topic of a number of recent research reports. Keefe, Bruyette & Woods dropped their target price on Starwood Property Trust from $19.00 to $18.50 and set an “outperform” rating on the stock in a research report on Friday, August 7th. Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a research note on Monday, August 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of Starwood Property Trust in a research report on Friday, August 7th. Wall Street Zen cut shares of Starwood Property Trust from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Finally, Citigroup reiterated a “market outperform” rating on shares of Starwood Property Trust in a research note on Thursday. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $19.20.

Starwood Property Trust Trading Down 2.4%

The company has a market cap of $5.31 billion, a price-to-earnings ratio of 24.31, a P/E/G ratio of 1.99 and a beta of 0.98. The company has a debt-to-equity ratio of 3.47, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a fifty day moving average price of $16.00 and a 200 day moving average price of $16.84.

Starwood Property Trust (NYSE:STWD) last issued its earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.40. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The business had revenue of $201.42 million for the quarter, compared to the consensus estimate of $521.67 million. During the same period in the previous year, the company earned $0.43 earnings per share. The firm’s revenue for the quarter was up 15.6% on a year-over-year basis. As a group, equities analysts predict that Starwood Property Trust, Inc. will post 1.4 EPS for the current fiscal year.

Starwood Property Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.48 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.92 annualized dividend and a dividend yield of 13.4%. Starwood Property Trust’s payout ratio is currently 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

Hedge funds have recently bought and sold shares of the company. QRG Capital Management Inc. lifted its position in shares of Starwood Property Trust by 101.4% in the second quarter. QRG Capital Management Inc. now owns 344,716 shares of the real estate investment trust’s stock valued at $5,646,000 after buying an additional 173,558 shares during the last quarter. Envestnet Portfolio Solutions Inc. acquired a new position in shares of Starwood Property Trust during the 2nd quarter worth approximately $252,000. Bullseye Investment Management LLC acquired a new position in shares of Starwood Property Trust during the 2nd quarter worth approximately $34,000. Integrated Wealth Concepts LLC bought a new stake in Starwood Property Trust in the 2nd quarter valued at $68,000. Finally, RFG Advisory LLC raised its stake in Starwood Property Trust by 1.5% in the 2nd quarter. RFG Advisory LLC now owns 192,408 shares of the real estate investment trust’s stock valued at $3,152,000 after acquiring an additional 2,784 shares during the period. 49.82% of the stock is currently owned by institutional investors and hedge funds.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust focused primarily on commercial real estate finance. The company originates, acquires, finances and manages a range of commercial real estate debt investments, including first mortgage loans, mezzanine loans, subordinated debt and securities backed by commercial properties.

Its activities also include infrastructure lending, residential lending and the ownership or management of commercial real estate investments. Through these businesses, Starwood Property Trust provides financing to property owners, developers and investors across sectors such as office, multifamily, industrial, hospitality and other commercial real estate categories.

Founded in 2009, the company operates primarily in the United States and also pursues investment opportunities in international markets, including Europe.