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

Starwood Property Trust, Inc. (NYSE:STWD) has been given an average rating of “Moderate Buy” by the six analysts that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $20.3750.

STWD has been the topic of a number of recent research reports. Wells Fargo & Company reduced 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 Thursday. Weiss Ratings reiterated a “hold (c)” rating on shares of Starwood Property Trust in a report on Wednesday, January 21st. Keefe, Bruyette & Woods decreased their price target 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 Wednesday, November 12th. Finally, Zacks Research raised Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th.

Starwood Property Trust Stock Down 1.5%

STWD stock opened at $17.83 on Friday. The stock 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 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 current ratio of 1.68 and a quick ratio of 1.33. The business’s fifty day moving average price is $18.19 and its two-hundred day moving average price is $18.76.

Starwood Property Trust (NYSE:STWD) last issued its quarterly earnings data on Wednesday, February 25th. The real estate investment trust reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $469.53 million. During the same quarter in the previous year, the company posted $0.48 EPS. Starwood Property Trust’s quarterly revenue was up 8.5% compared to the same quarter last year. On average, equities analysts anticipate that Starwood Property Trust will post 1.88 earnings per share for the current year.

Starwood Property Trust declared that its board has authorized a share repurchase plan on Thursday, February 26th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the real estate investment trust to purchase up to 6.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its stock is undervalued.

Starwood Property Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were paid a dividend of $0.48 per share. The ex-dividend date of this dividend 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 is presently 165.52%.

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

Institutional Trading of Starwood Property Trust

Several institutional investors and hedge funds have recently modified their holdings of the stock. MidFirst Bank acquired a new position in shares of Starwood Property Trust in the 4th quarter valued at $828,000. Virtu Financial LLC acquired a new position in shares of Starwood Property Trust during the 4th quarter worth approximately $1,300,000. Sunbelt Securities Inc. increased its position in Starwood Property Trust by 36.4% during the fourth quarter. Sunbelt Securities Inc. now owns 62,528 shares of the real estate investment trust’s stock worth $1,126,000 after purchasing an additional 16,690 shares during the last quarter. Empowered Funds LLC acquired a new position in Starwood Property Trust in the fourth quarter valued at approximately $103,000. Finally, XTX Topco Ltd acquired a new stake in shares of Starwood Property Trust during the 4th quarter worth about $4,087,000. Institutional investors own 49.82% of the company’s stock.

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.