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

Shares of Starwood Property Trust, Inc. (NYSE:STWD) hit a new 52-week low during mid-day trading on Monday. The company traded as low as $12.21 and last traded at $12.0840, with a volume of 628,456 shares. The stock had previously closed at $12.46.

Wall Street Analyst Weigh In

STWD has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods decreased their price target on Starwood Property Trust from $18.50 to $16.00 and set an “outperform” rating for the company in a research note on Friday, October 9th. Citigroup restated a “market outperform” rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. Zacks Research upgraded shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a report on Thursday, June 25th. Wall Street Zen lowered shares of Starwood Property Trust from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Wells Fargo & Company set a $20.00 price objective on shares of Starwood Property Trust in a research report on Monday, August 17th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $18.70.

Starwood Property Trust Stock Performance

The firm has a fifty day moving average of $14.76 and a 200 day moving average of $16.26. The company has a debt-to-equity ratio of 3.47, a current ratio of 1.46 and a quick ratio of 1.46. The stock has a market capitalization of $4.51 billion, a price-to-earnings ratio of 20.66, a price-to-earnings-growth ratio of 1.58 and a beta of 1.01.

Starwood Property Trust (NYSE:STWD) last posted its earnings results on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.40. Starwood Property Trust had a net margin of 11.35% and a return on equity of 7.85%. The business had revenue of $201.42 million for the quarter, compared to analyst estimates of $521.67 million. During the same period in the prior year, the company posted $0.43 EPS. The company’s revenue for the quarter was up 15.6% on a year-over-year basis. On average, sell-side analysts anticipate that Starwood Property Trust, Inc. will post 1.40 earnings per share for the current fiscal year.

Starwood Property Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 15.7%. The ex-dividend date of this dividend was Wednesday, September 30th. Starwood Property Trust’s dividend payout ratio (DPR) is currently 325.42%.

Hedge Funds Weigh In On Starwood Property Trust

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Starwood Property Trust in the 2nd quarter valued at approximately $589,366,000. Bank of America Corp DE acquired a new position in Starwood Property Trust during the second quarter worth $19,537,000. QRG Capital Management Inc. grew its holdings in Starwood Property Trust by 101.4% during the second quarter. QRG Capital Management Inc. now owns 344,716 shares of the real estate investment trust’s stock worth $5,646,000 after acquiring an additional 173,558 shares during the period. Blue Owl Capital Holdings LP acquired a new position in Starwood Property Trust during the second quarter worth $3,216,000. Finally, The Manufacturers Life Insurance Company purchased a new position in Starwood Property Trust in the second quarter worth $4,488,000. Institutional investors and hedge funds own 49.82% of the company’s stock.

Starwood Property Trust Company Profile

Starwood Property Trust, Inc is a real estate investment trust that focuses on commercial real estate finance and related investments. The company originates, acquires, and manages a range of real estate debt and equity investments, serving institutional borrowers, property owners, and developers.

Its portfolio and lending activities include senior mortgage loans, mezzanine debt, subordinated loans, preferred equity, commercial mortgage-backed securities, and other structured real estate investments.