Wells Fargo & Company Has Lowered Expectations for Starwood Property Trust (NYSE:STWD) Stock Price

Starwood Property Trust (NYSE:STWD) had its price objective lowered by research analysts at Wells Fargo & Company from $22.00 to $21.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an “outperform” rating on the real estate investment trust’s stock. Wells Fargo & Company‘s target price would indicate a potential upside of 17.77% from the company’s current price.

A number of other research analysts have also recently commented on STWD. Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Starwood Property Trust in a research note on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods decreased their target price on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Wednesday, November 12th. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.38.

Starwood Property Trust Stock Performance

NYSE:STWD opened at $17.83 on Thursday. The firm has a market capitalization of $6.61 billion, a PE ratio of 15.37 and a beta of 1.13. The stock’s fifty day moving average is $18.19 and its 200 day moving average is $18.76. Starwood Property Trust has a fifty-two week low of $16.59 and a fifty-two week high of $21.05. The company has a debt-to-equity ratio of 3.10, a quick ratio of 1.33 and a current ratio of 1.68.

Starwood Property Trust (NYSE:STWD) last posted its quarterly earnings data on Wednesday, February 25th. The real estate investment trust reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.01. Starwood Property Trust had a net margin of 22.32% and a return on equity of 8.16%. The business had revenue of $492.95 million for the quarter, compared to analysts’ expectations of $469.53 million. During the same quarter in the previous year, the business posted $0.48 earnings per share. The business’s revenue was up 8.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Starwood Property Trust will post 1.88 earnings per share for the current year.

Starwood Property Trust declared that its Board of Directors has authorized a stock 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 generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Starwood Property Trust

Several large investors have recently bought and sold shares of STWD. Cetera Trust Company N.A increased its holdings in Starwood Property Trust by 5.2% in the 2nd quarter. Cetera Trust Company N.A now owns 10,730 shares of the real estate investment trust’s stock worth $215,000 after buying an additional 530 shares during the period. GAMMA Investing LLC boosted its position in Starwood Property Trust by 14.8% during the third quarter. GAMMA Investing LLC now owns 4,235 shares of the real estate investment trust’s stock worth $82,000 after purchasing an additional 547 shares in the last quarter. Park Avenue Securities LLC grew its stake in Starwood Property Trust by 3.5% in the 3rd quarter. Park Avenue Securities LLC now owns 16,776 shares of the real estate investment trust’s stock valued at $325,000 after acquiring an additional 562 shares during the period. Brown Advisory Inc. increased its stake in shares of Starwood Property Trust by 1.3% during the fourth quarter. Brown Advisory Inc. now owns 47,432 shares of the real estate investment trust’s stock worth $854,000 after purchasing an additional 600 shares in the last quarter. Finally, CIBC Private Wealth Group LLC raised its holdings in shares of Starwood Property Trust by 11.5% during the third quarter. CIBC Private Wealth Group LLC now owns 5,943 shares of the real estate investment trust’s stock valued at $115,000 after acquiring an additional 613 shares during the last quarter. Hedge funds and other institutional investors own 49.82% of the company’s stock.

Key Starwood Property Trust News

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

• Positive Sentiment: Board authorizes up to $400 million share repurchase (≈6.1% of shares), signaling management thinks the stock is undervalued and should support EPS/share and book value over time. PR Newswire: Repurchase Program
• Positive Sentiment: Analysts and commentators say a dividend cut in 2026 is unlikely, which supports income investors and reduces downside risk to the stock’s yield profile. Seeking Alpha: Dividend Outlook
• Positive Sentiment: Company-reported Q4 results showed EPS roughly in line with or slightly ahead of consensus and revenue came in above estimates, a near-term fundamental positive for the shares. Yahoo Finance: Q4 Earnings
• Neutral Sentiment: Wells Fargo trimmed its price target from $22 to $21 but kept an “outperform” rating — a modest pullback in optimism but still an above-market view. TickerReport / Benzinga: Price Target
• Neutral Sentiment: Company earnings presentation and call materials are available for investors to parse performance and forward guidance; these provide detail but showed mixed metrics across GAAP vs. adjusted numbers. Seeking Alpha: Q4 Presentation
• Negative Sentiment: Book value per share (BVPS) declined ~3.9% year-over-year and certain call transcripts/reporting highlighted misses on some metrics — signs of margin/expense pressure that could weigh on longer-term valuation. Zacks: BVPS Decline
• Negative Sentiment: Some transcripts and secondary coverage reported differing EPS/methodology (one transcript cited a miss), creating short-term investor uncertainty about reported vs. adjusted results. InsiderMonkey: Earnings Call Transcript

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.