Starwood Property Trust (NYSE:STWD) Reaches New 52-Week Low – Should You Sell?

Starwood Property Trust, Inc. (NYSE:STWD) shares hit a new 52-week low on Tuesday. The stock traded as low as $12.42 and last traded at $12.5050, with a volume of 1,283,500 shares. The stock had previously closed at $12.52.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on STWD shares. Wall Street Zen downgraded shares of Starwood Property Trust from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Wells Fargo & Company set a $20.00 price target on shares of Starwood Property Trust in a report on Monday, August 17th. Citigroup reaffirmed a “market outperform” rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. Keefe, Bruyette & Woods decreased their price target on shares of Starwood Property Trust from $18.50 to $16.00 and set an “outperform” rating for the company in a report on Friday. Finally, JPMorgan Chase & Co. lowered their target price on shares of Starwood Property Trust from $19.00 to $18.50 and set an “overweight” rating on the stock in a research report on Tuesday, August 18th. Five investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $18.70.

Starwood Property Trust Price Performance

The company has a market capitalization of $4.60 billion, a price-to-earnings ratio of 21.08, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 3.47. The stock’s 50-day moving average price is $15.24 and its 200-day moving average price is $16.47.

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 (EPS) for the quarter, hitting analysts’ consensus estimates of $0.40. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%. The firm had revenue of $201.42 million for the quarter, compared to analysts’ expectations of $521.67 million. During the same quarter last year, the business earned $0.43 earnings per share. The company’s revenue was up 15.6% compared to the same quarter last year. Equities research analysts anticipate that Starwood Property Trust, Inc. will post 1.40 earnings per share for the current year.

Starwood Property Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be issued a $0.48 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $1.92 annualized dividend and a dividend yield of 15.5%. Starwood Property Trust’s dividend payout ratio (DPR) is presently 325.42%.

Institutional Investors Weigh In On Starwood Property Trust

Several hedge funds have recently bought and sold shares of STWD. NorthCrest Asset Manangement LLC acquired a new position in Starwood Property Trust in the 3rd quarter valued at about $134,000. Wedmont Private Capital acquired a new stake in Starwood Property Trust during the third quarter worth about $296,000. GAMMA Investing LLC increased its stake in Starwood Property Trust by 33.5% in the third quarter. GAMMA Investing LLC now owns 10,395 shares of the real estate investment trust’s stock valued at $140,000 after acquiring an additional 2,610 shares during the last quarter. Adams Asset Advisors LLC lifted its stake in Starwood Property Trust by 48.1% during the third quarter. Adams Asset Advisors LLC now owns 299,901 shares of the real estate investment trust’s stock worth $4,049,000 after purchasing an additional 97,452 shares during the last quarter. Finally, Miller Global Investments LLC lifted its position in shares of Starwood Property Trust by 44.0% during the 3rd quarter. Miller Global Investments LLC now owns 44,332 shares of the real estate investment trust’s stock worth $598,000 after buying an additional 13,542 shares during the last quarter. 49.82% of the stock is currently owned by institutional investors and hedge funds.

About Starwood Property Trust

Starwood Property Trust, Inc (NYSE: STWD) is a real estate investment trust focused on commercial real estate finance. The company originates, acquires, finances and manages a range of real estate debt investments, including senior and subordinate mortgages, mezzanine loans, and other credit investments secured by commercial properties.

Its business also includes commercial real estate lending and servicing, residential lending, and infrastructure lending. Through these activities, Starwood Property Trust provides financing to property owners, developers and other real estate participants across multiple property types, including office, multifamily, industrial, hospitality and other commercial assets.

Founded in 2009, the company operates primarily in the United States and has also pursued lending and investment opportunities in Europe and other select international markets.