Starwood Property Trust (NYSE:STWD) Reaches New 12-Month Low – Here’s Why

Shares of Starwood Property Trust, Inc. (NYSE:STWD) reached a new 52-week low on Wednesday . The company traded as low as $16.60 and last traded at $16.6470, with a volume of 3000715 shares. The stock had previously closed at $16.74.

Analyst Upgrades and Downgrades

STWD has been the subject of several research analyst reports. Keefe, Bruyette & Woods lowered their target price on shares of Starwood Property Trust from $20.00 to $19.50 and set an “outperform” rating for the company in a report on Wednesday, May 13th. JPMorgan Chase & Co. cut their price target on shares of Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. UBS Group assumed coverage on shares of Starwood Property Trust in a research report on Tuesday, June 2nd. They issued a “buy” rating and a $20.00 price target for the company. Bank of America restated a “neutral” rating and issued a $19.00 price objective on shares of Starwood Property Trust in a research note on Friday, March 6th. Finally, Wells Fargo & Company dropped their price objective on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, February 26th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $19.70.

Starwood Property Trust Price 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 firm has a market capitalization of $6.17 billion, a price-to-earnings ratio of 17.34, a P/E/G ratio of 2.37 and a beta of 0.98. The company has a fifty day moving average price of $17.43 and a two-hundred day moving average price of $17.81.

Starwood Property Trust (NYSE:STWD) last announced its 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 business 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 period in the previous year, the firm earned $0.45 earnings per share. On average, equities research analysts expect that Starwood Property Trust, Inc. will post 1.55 EPS for the current fiscal year.

Starwood Property Trust Announces Dividend

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

Starwood Property Trust declared that its board has initiated a share buyback program on Thursday, February 26th that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the real estate investment trust to buy up to 6.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Starwood Property Trust news, Director Jeffrey G. Dishner sold 7,013 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $17.13, for a total transaction of $120,132.69. Following the completion of the sale, the director directly owned 168,152 shares of the company’s stock, valued at approximately $2,880,443.76. This trade represents a 4.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Starwood Property Trust

Several hedge funds have recently modified their holdings of STWD. Vanguard Group Inc. increased its holdings in Starwood Property Trust by 7.1% in the third quarter. Vanguard Group Inc. now owns 32,976,364 shares of the real estate investment trust’s stock valued at $638,752,000 after buying an additional 2,193,085 shares in the last quarter. Argosy Lionbridge Management LLC lifted its position in shares of Starwood Property Trust by 286.1% during the 3rd quarter. Argosy Lionbridge Management LLC now owns 102,566 shares of the real estate investment trust’s stock valued at $1,987,000 after acquiring an additional 76,000 shares during the period. GraniteShares Advisors LLC purchased a new stake in shares of Starwood Property Trust during the 4th quarter worth approximately $2,617,000. Blair William & Co. IL boosted its stake in shares of Starwood Property Trust by 36.6% during the 3rd quarter. Blair William & Co. IL now owns 647,024 shares of the real estate investment trust’s stock worth $12,533,000 after acquiring an additional 173,462 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC acquired a new stake in shares of Starwood Property Trust in the 3rd quarter worth approximately $1,680,000. 49.82% of the stock is owned by institutional investors and hedge funds.

About Starwood Property Trust

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.