Starwood Property Trust (NYSE:STWD) Reaches New 52-Week Low – Here’s Why

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

Several analysts recently issued reports on the stock. Wells Fargo & Company reduced their price objective 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. Weiss Ratings cut shares of Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Bank of America reissued a “neutral” rating and issued a $19.00 price target on shares of Starwood Property Trust in a research note on Friday, March 6th. Zacks Research lowered shares of Starwood Property Trust from a “hold” rating to a “strong sell” rating in a report on Wednesday, May 27th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Starwood Property Trust from $20.00 to $19.50 and set an “outperform” rating for the company in a research report on Wednesday, May 13th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Starwood Property Trust presently has an average rating of “Hold” and a consensus target price of $19.70.

Starwood Property Trust Trading Up 0.9%

The company has a 50 day moving average of $17.38 and a 200-day moving average of $17.79. The stock has a market cap of $6.22 billion, a price-to-earnings ratio of 17.45, a price-to-earnings-growth ratio of 2.19 and a beta of 0.98. The company has a debt-to-equity ratio of 3.31, a quick ratio of 1.57 and a current ratio of 1.57.

Starwood Property Trust (NYSE:STWD) last released 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 firm 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 prior year, the firm earned $0.45 earnings per share. On average, research analysts anticipate that Starwood Property Trust, Inc. will post 1.55 earnings per share for the current year.

Starwood Property Trust Dividend Announcement

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

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

Insider Transactions at Starwood Property Trust

In related news, Director Jeffrey G. Dishner sold 7,013 shares of Starwood Property Trust stock in a transaction on Wednesday, April 1st. The stock was 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 trade represents a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 5.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. MassMutual Private Wealth & Trust FSB lifted its holdings in Starwood Property Trust by 106.1% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 1,449 shares of the real estate investment trust’s stock worth $26,000 after buying an additional 746 shares during the last quarter. CENTRAL TRUST Co increased its position in Starwood Property Trust by 154.4% in the 4th quarter. CENTRAL TRUST Co now owns 1,496 shares of the real estate investment trust’s stock valued at $27,000 after acquiring an additional 908 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Starwood Property Trust in the fourth quarter valued at approximately $28,000. FNY Investment Advisers LLC purchased a new stake in shares of Starwood Property Trust during the third quarter worth approximately $30,000. Finally, Flagship Harbor Advisors LLC purchased a new stake in shares of Starwood Property Trust during the fourth quarter worth approximately $53,000. Hedge funds and other institutional investors own 49.82% of the company’s stock.

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.