Starwood Property Trust (NYSE:STWD) Sets New 1-Year Low – Time to Sell?

Shares of Starwood Property Trust, Inc. (NYSE:STWD) hit a new 52-week low during trading on Tuesday. The company traded as low as $12.42 and last traded at $12.5050, with a volume of 1,283,500 shares trading hands. The stock had previously closed at $12.52.

Wall Street Analyst Weigh In

STWD has been the subject of several recent analyst reports. Wells Fargo & Company set a $20.00 price objective on shares of Starwood Property Trust in a research report on Monday, August 17th. Wall Street Zen downgraded Starwood Property Trust from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Citigroup reiterated a “market outperform” rating on shares of Starwood Property Trust in a research note on Thursday, September 24th. JPMorgan Chase & Co. decreased their price objective on Starwood Property Trust from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Tuesday, August 18th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Starwood Property Trust from $18.50 to $16.00 and set an “outperform” rating on the stock in a report on Friday. Five analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Starwood Property Trust currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.70.

Starwood Property Trust Price Performance

The stock has a market cap of $4.60 billion, a P/E ratio of 21.08, a PEG ratio of 1.68 and a beta of 1.01. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 3.47. The firm’s fifty day moving average price is $15.24 and its 200-day moving average price is $16.47.

Starwood Property Trust (NYSE:STWD) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.40 earnings per share for the quarter, hitting the consensus estimate of $0.40. The business had revenue of $201.42 million during the quarter, compared to analysts’ expectations of $521.67 million. Starwood Property Trust had a return on equity of 7.85% and a net margin of 11.35%. The business’s revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the business posted $0.43 EPS. Analysts forecast that Starwood Property Trust, Inc. will post 1.40 earnings per share for the current year.

Starwood Property Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.48 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.92 dividend on an annualized basis and a yield of 15.5%. Starwood Property Trust’s payout ratio is presently 325.42%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Versant Capital Management Inc raised its position in shares of Starwood Property Trust by 293.2% during the 2nd quarter. Versant Capital Management Inc now owns 1,954 shares of the real estate investment trust’s stock valued at $32,000 after buying an additional 1,457 shares during the period. Orion Capital Management LLC purchased a new stake in Starwood Property Trust in the second quarter valued at approximately $33,000. Bullseye Investment Management LLC acquired a new position in Starwood Property Trust during the second quarter worth $34,000. CENTRAL TRUST Co boosted its holdings in Starwood Property Trust by 66.6% during the 1st quarter. CENTRAL TRUST Co now owns 2,493 shares of the real estate investment trust’s stock valued at $43,000 after acquiring an additional 997 shares during the period. Finally, North Star Investment Management Corp. grew its position in Starwood Property Trust by 1,605.0% in the 1st quarter. North Star Investment Management Corp. now owns 3,410 shares of the real estate investment trust’s stock valued at $59,000 after acquiring an additional 3,210 shares in the last quarter. Hedge funds and other institutional investors own 49.82% of the company’s stock.

About Starwood Property Trust

Starwood Property Trust, Inc (NYSE: STWD) is a real estate investment trust focused on commercial real estate finance. The company originates, acquires, finances and manages a range of real estate debt investments, including senior and subordinate mortgages, mezzanine loans, and other credit investments secured by commercial properties.

Its business also includes commercial real estate lending and servicing, residential lending, and infrastructure lending. Through these activities, Starwood Property Trust provides financing to property owners, developers and other real estate participants across multiple property types, including office, multifamily, industrial, hospitality and other commercial assets.

Founded in 2009, the company operates primarily in the United States and has also pursued lending and investment opportunities in Europe and other select international markets.