Starwood Property Trust (NYSE:STWD) Reaches New 1-Year Low – What’s Next?

Starwood Property Trust, Inc. (NYSE:STWD)’s share price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $16.89 and last traded at $17.0650, with a volume of 485427 shares trading hands. The stock had previously closed at $17.04.

Analyst Ratings Changes

Several research firms have recently issued reports on STWD. Bank of America reiterated a “neutral” rating and issued a $19.00 price objective on shares of Starwood Property Trust in a report on Friday, March 6th. Keefe, Bruyette & Woods decreased 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 report on Wednesday, May 13th. JPMorgan Chase & Co. decreased their price objective on shares of Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Wells Fargo & Company decreased their price objective on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Thursday, February 26th. Finally, Weiss Ratings lowered shares of Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Starwood Property Trust presently has an average rating of “Hold” and an average price target of $19.70.

Starwood Property Trust Trading Up 0.5%

The firm has a market capitalization of $6.35 billion, a price-to-earnings ratio of 17.84, a price-to-earnings-growth ratio of 2.23 and a beta of 1.02. The firm’s 50 day moving average is $17.71 and its 200 day moving average is $18.02. The company has a quick ratio of 1.57, a current ratio of 1.57 and a debt-to-equity ratio of 3.31.

Starwood Property Trust (NYSE:STWD) last released its earnings results on Friday, May 8th. The real estate investment trust reported $0.39 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.03). Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The business had revenue of $205.55 million for the quarter, compared to analyst estimates of $496.25 million. During the same period in the prior year, the company earned $0.45 earnings per share. The firm’s revenue for the quarter was up 22.5% on a year-over-year basis. Equities analysts forecast that Starwood Property Trust, Inc. will post 1.69 earnings per share for the current year.

Starwood Property Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.48 per share. 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 is currently 200.00%.

Starwood Property Trust announced that its board has approved a stock repurchase plan on Thursday, February 26th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the real estate investment trust to purchase up to 6.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at Starwood Property Trust

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the company’s stock in a transaction that occurred 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 sale, the director owned 168,152 shares in the company, valued at approximately $2,880,443.76. This represents a 4.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Starwood Property Trust

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Starwood Property Trust by 7.1% in the 3rd 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 during the period. Argosy Lionbridge Management LLC increased its stake in Starwood Property Trust by 286.1% in 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 buying an additional 76,000 shares during the period. GraniteShares Advisors LLC acquired a new position in Starwood Property Trust in the 4th quarter valued at approximately $2,617,000. Envestnet Asset Management Inc. increased its stake in Starwood Property Trust by 19.6% in the 3rd quarter. Envestnet Asset Management Inc. now owns 589,169 shares of the real estate investment trust’s stock valued at $11,412,000 after buying an additional 96,484 shares during the period. Finally, Blair William & Co. IL increased its stake in Starwood Property Trust by 36.6% in the 3rd quarter. Blair William & Co. IL now owns 647,024 shares of the real estate investment trust’s stock valued at $12,533,000 after buying an additional 173,462 shares during the period. Hedge funds and other institutional investors own 49.82% of the company’s stock.

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.