Starwood Property Trust (NYSE:STWD) Reaches New 12-Month Low – Time to Sell?

Starwood Property Trust, Inc. (NYSE:STWD)’s share price reached a new 52-week low during trading on Monday . The company traded as low as $16.76 and last traded at $16.8550, with a volume of 1798322 shares. The stock had previously closed at $17.05.

Analysts Set New Price Targets

A number of research firms have commented on STWD. Weiss Ratings lowered Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. JPMorgan Chase & Co. dropped their target price on Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. Zacks Research downgraded Starwood Property Trust from a “hold” rating to a “strong sell” rating in a research report on Wednesday, May 27th. UBS Group began coverage on Starwood Property Trust in a research report on Tuesday, June 2nd. They set a “buy” rating and a $20.00 target price for the company. Finally, Keefe, Bruyette & Woods dropped their target price on 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 research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $19.70.

Starwood Property Trust Stock Down 1.3%

The business has a fifty day moving average of $17.55 and a 200 day moving average of $17.91. The firm has a market cap of $6.24 billion, a P/E ratio of 17.54, a P/E/G ratio of 2.41 and a beta of 0.99. 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 quarterly earnings data on Friday, May 8th. The real estate investment trust reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.03). The company had revenue of $205.55 million during the quarter, compared to the consensus estimate of $496.25 million. Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The company’s revenue for the quarter was up 22.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.45 EPS. On average, equities research analysts predict that Starwood Property Trust, Inc. will post 1.57 EPS for the current year.

Starwood Property Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 11.4%. The ex-dividend date was Tuesday, March 31st. Starwood Property Trust’s dividend payout ratio is currently 200.00%.

Starwood Property Trust announced that its board has approved a share repurchase plan on Thursday, February 26th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the real estate investment trust to buy up to 6.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Jeffrey G. Dishner sold 7,013 shares of the company’s stock in a transaction dated 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 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Starwood Property Trust

A number of institutional investors and hedge funds have recently added to or reduced their stakes in STWD. MassMutual Private Wealth & Trust FSB grew its stake in Starwood Property Trust by 106.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 1,449 shares of the real estate investment trust’s stock valued at $26,000 after acquiring an additional 746 shares during the period. CENTRAL TRUST Co grew its stake in Starwood Property Trust by 154.4% in the fourth 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. Jackson Grant Investment Advisers Inc. acquired a new position in Starwood Property Trust in the third quarter valued at about $29,000. Los Angeles Capital Management LLC bought a new stake in Starwood Property Trust during the 4th quarter worth approximately $28,000. Finally, FNY Investment Advisers LLC bought a new stake in Starwood Property Trust during the 3rd quarter worth approximately $30,000. 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.