Starwood Property Trust, Inc. (NYSE:STWD) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Starwood Property Trust, Inc. (NYSE:STWD) has received an average rating of “Moderate Buy” from the six ratings firms that are currently covering the company, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $20.3750.

Several research analysts have issued reports on the stock. Keefe, Bruyette & Woods decreased their price target on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, November 12th. Zacks Research raised shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Wells Fargo & Company decreased their price objective on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Starwood Property Trust in a report on Wednesday, January 21st.

Starwood Property Trust Stock Down 1.5%

STWD stock opened at $17.83 on Friday. The firm’s 50-day moving average is $18.19 and its two-hundred day moving average is $18.76. The company has a market capitalization of $6.61 billion, a price-to-earnings ratio of 15.37 and a beta of 1.13. Starwood Property Trust has a 52 week low of $16.59 and a 52 week high of $21.05. The company has a current ratio of 1.68, a quick ratio of 1.33 and a debt-to-equity ratio of 3.10.

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

Starwood Property Trust announced that its Board of Directors has approved a share buyback program on Thursday, February 26th that allows the company to buyback $400.00 million in 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 often a sign that the company’s management believes its stock is undervalued.

Starwood Property Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st were given a dividend of $0.48 per share. The ex-dividend date was Wednesday, December 31st. This represents a $1.92 dividend on an annualized basis and a yield of 10.8%. Starwood Property Trust’s dividend payout ratio (DPR) is presently 165.52%.

Institutional Trading of Starwood Property Trust

A number of hedge funds have recently made changes to their positions in the stock. DLD Asset Management LP bought a new stake in Starwood Property Trust in the second quarter worth $692,415,000. Norges Bank acquired a new position in Starwood Property Trust during the 4th quarter worth $75,177,000. Advisors Capital Management LLC lifted its position in shares of Starwood Property Trust by 157.3% during the 4th quarter. Advisors Capital Management LLC now owns 3,702,935 shares of the real estate investment trust’s stock worth $66,690,000 after purchasing an additional 2,263,856 shares during the last quarter. Vanguard Group Inc. grew its holdings in Starwood Property Trust by 7.1% in the 3rd quarter. Vanguard Group Inc. now owns 32,976,364 shares of the real estate investment trust’s stock valued at $638,752,000 after buying an additional 2,193,085 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in Starwood Property Trust in the 3rd quarter valued at approximately $20,457,000. 49.82% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Starwood Property Trust

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.