Zacks Research Downgrades Starwood Property Trust (NYSE:STWD) to Strong Sell

Starwood Property Trust (NYSE:STWD) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday,Zacks.com reports.

A number of other equities research analysts have also issued reports on the company. Keefe, Bruyette & Woods reduced their target price on Starwood Property Trust from $20.00 to $19.50 and set an “outperform” rating on the stock in a research note on Wednesday, May 13th. Weiss Ratings lowered shares of Starwood Property Trust from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Bank of America reissued a “neutral” rating and set a $19.00 price target on shares of Starwood Property Trust in a research note on Friday, March 6th. JPMorgan Chase & Co. reduced their price target on Starwood Property Trust from $20.00 to $19.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. Finally, Wells Fargo & Company reduced their price target on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday, February 26th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $19.70.

Starwood Property Trust Stock Down 1.1%

Starwood Property Trust stock opened at $17.13 on Wednesday. The stock’s fifty day moving average is $17.60 and its two-hundred day moving average is $17.95. The company has a debt-to-equity ratio of 3.31, a current ratio of 1.57 and a quick ratio of 1.57. Starwood Property Trust has a 1-year low of $16.81 and a 1-year high of $21.05. The stock has a market cap of $6.35 billion, a PE ratio of 17.84, a P/E/G ratio of 2.44 and a beta of 1.02.

Starwood Property Trust (NYSE:STWD) last issued its quarterly earnings results on Friday, May 8th. The real estate investment trust reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.03). Starwood Property Trust had a net margin of 18.11% and a return on equity of 7.91%. The company had revenue of $205.55 million during the quarter, compared to analyst estimates of $496.25 million. During the same quarter last year, the firm earned $0.45 EPS. The business’s revenue was up 22.5% on a year-over-year basis. On average, sell-side analysts expect that Starwood Property Trust will post 1.57 EPS for the current fiscal year.

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

Insider Activity

In other news, Director Jeffrey G. Dishner sold 7,013 shares of the business’s stock in a transaction dated Wednesday, April 1st. The shares were 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 of the company’s stock, valued at approximately $2,880,443.76. The trade was a 4.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 5.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of STWD. MassMutual Private Wealth & Trust FSB lifted its holdings 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 worth $26,000 after acquiring an additional 746 shares during the last quarter. CENTRAL TRUST Co boosted its stake in Starwood Property Trust by 154.4% during the 4th quarter. CENTRAL TRUST Co now owns 1,496 shares of the real estate investment trust’s stock valued at $27,000 after purchasing an additional 908 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Starwood Property Trust in the 4th quarter worth approximately $28,000. Cloud Capital Management LLC bought a new position in shares of Starwood Property Trust in the third quarter valued at $29,000. Finally, Jackson Grant Investment Advisers Inc. bought a new position in shares of Starwood Property Trust in the third quarter valued at $29,000. 49.82% of the stock is owned by institutional investors and hedge funds.

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.