Stock Repurchase Program Authorized by Starwood Property Trust (NYSE:STWD) Board

Starwood Property Trust (NYSE:STWD) declared that its board has authorized a share repurchase program on Thursday, February 26th, RTT News reports. The company plans to repurchase $400.00 million in shares. This repurchase authorization allows the real estate investment trust to reacquire up to 6.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Starwood Property Trust Trading Up 2.1%

Shares of NYSE STWD traded up $0.37 during trading hours on Thursday, hitting $18.09. 4,388,901 shares of the company traded hands, compared to its average volume of 3,423,960. Starwood Property Trust has a 12 month low of $16.59 and a 12 month high of $21.05. The stock has a market capitalization of $6.70 billion, a price-to-earnings ratio of 15.59 and a beta of 1.13. The company has a current ratio of 1.68, a quick ratio of 1.33 and a debt-to-equity ratio of 3.10. The company’s 50 day moving average price is $18.20 and its 200 day moving average price is $18.78.

Starwood Property Trust (NYSE:STWD) last released its quarterly earnings results on Wednesday, February 25th. The real estate investment trust reported $0.42 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.01. The firm had revenue of $492.95 million during the quarter, compared to analysts’ expectations of $469.53 million. Starwood Property Trust had a net margin of 22.32% and a return on equity of 8.16%. The firm’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.48 EPS. On average, equities research analysts anticipate that Starwood Property Trust will post 1.88 earnings per share for the current fiscal year.

Starwood Property Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.6%. The ex-dividend date was Wednesday, December 31st. Starwood Property Trust’s dividend payout ratio (DPR) is 165.52%.

Analyst Upgrades and Downgrades

STWD has been the topic of several recent analyst reports. Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Keefe, Bruyette & Woods 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 research report on Wednesday, November 12th. Wells Fargo & Company lowered their target price 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. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starwood Property Trust in a research note on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Starwood Property Trust currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.38.

Starwood Property Trust News Summary

Here are the key news stories impacting Starwood Property Trust this week:

• Positive Sentiment: Board authorized up to $400 million buyback over one year, funded with existing cash — reduces share count, supports the dividend and is a clear near-term capital-return catalyst. Read More.
• Positive Sentiment: Q4 results slightly beat expectations — GAAP and Distributable EPS/metrics topped consensus (reported distributable EPS $0.42 and revenue ~$493M), helping validate underlying earnings power despite a year-over-year EPS decline. Read More.
• Positive Sentiment: Strong capital deployment and liquidity profile: invested $12.7B in 2025, executed a record $4.4B of capital transactions, and ended the period with roughly $1.4B of liquidity — supports growth and flexibility. Company also maintained a long-running, consistent dividend. Read More.
• Neutral Sentiment: Analyst view shifted modestly: Wells Fargo trimmed its price target from $22 to $21 but kept an outperform rating — a slight headwind but still indicates upside from current levels. Read More.
• Negative Sentiment: Book value per share fell ~3.9% year-over-year and the company flagged higher expenses — BVPS erosion is a structural concern for an equity-focused REIT and may limit multiple expansion. Read More.
• Negative Sentiment: Mixed messaging from some call coverage/transcripts — while headline metrics beat, at least one transcript reported a miss on an EPS metric, which can create short-term investor uncertainty and volatility. Read More.

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.