Wells Fargo & Company Cuts Starwood Property Trust (NYSE:STWD) Price Target to $21.00

Starwood Property Trust (NYSE:STWD) had its price target decreased by Wells Fargo & Company from $22.00 to $21.00 in a research report released on Thursday morning,Benzinga reports. Wells Fargo & Company currently has an outperform rating on the real estate investment trust’s stock.

Other equities analysts have also issued research reports about the company. Zacks Research upgraded Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starwood Property Trust in a research note on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods dropped their target price 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. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Starwood Property Trust has a consensus rating of “Moderate Buy” and an average price target of $20.38.

Starwood Property Trust Stock Down 1.5%

STWD stock opened at $17.83 on Thursday. The firm has a market cap of $6.61 billion, a PE ratio of 15.37 and a beta of 1.13. Starwood Property Trust has a 12 month low of $16.59 and a 12 month 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 firm has a 50 day simple moving average of $18.19 and a 200 day simple moving average of $18.76.

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

Starwood Property Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were issued a $0.48 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.8%. Starwood Property Trust’s dividend payout ratio is currently 165.52%.

Starwood Property Trust declared that its Board of Directors has authorized a share repurchase plan on Thursday, February 26th that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the real estate investment trust to reacquire up to 6.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. MidFirst Bank acquired a new stake in shares of Starwood Property Trust during the 4th quarter valued at $828,000. Virtu Financial LLC purchased a new stake in shares of Starwood Property Trust during the fourth quarter worth $1,300,000. Sunbelt Securities Inc. raised its holdings in shares of 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 acquiring an additional 16,690 shares in the last quarter. Empowered Funds LLC acquired a new stake in Starwood Property Trust during the fourth quarter valued at $103,000. Finally, XTX Topco Ltd purchased a new position in Starwood Property Trust in the fourth quarter valued at about $4,087,000. Institutional investors and hedge funds own 49.82% of the company’s stock.

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.