Starwood Property Trust (NYSE:STWD) to Repurchase $400.00 million in Stock

Starwood Property Trust (NYSE:STWD) announced that its board has approved a share repurchase program on Thursday, February 26th, RTT News reports. The company plans to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to repurchase up to 6.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Keefe, Bruyette & Woods cut their price target on Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, November 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Starwood Property Trust in a research report on Wednesday, January 21st. Zacks Research upgraded shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Finally, Wells Fargo & Company 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 note on Thursday. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.38.

Starwood Property Trust Price Performance

Shares of Starwood Property Trust stock opened at $18.09 on Friday. The stock has a market cap of $6.70 billion, a price-to-earnings ratio of 15.59 and a beta of 1.13. The company has a debt-to-equity ratio of 3.10, a quick ratio of 1.33 and a current ratio of 1.68. The stock has a 50 day moving average price of $18.20 and a 200-day moving average price of $18.78. Starwood Property Trust has a one year low of $16.59 and a one year high of $21.05.

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

Starwood Property Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.6%. The ex-dividend date was Wednesday, December 31st. 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 authorized up to $400 million buyback over one year, funded with existing cash — reduces share count, supports the dividend and is a clear near-term capital-return catalyst. Read More.
• Positive Sentiment: Q4 results slightly beat expectations — GAAP and Distributable EPS/metrics topped consensus (reported distributable EPS $0.42 and revenue ~$493M), helping validate underlying earnings power despite a year-over-year EPS decline. Read More.
• Positive Sentiment: Strong capital deployment and liquidity profile: invested $12.7B in 2025, executed a record $4.4B of capital transactions, and ended the period with roughly $1.4B of liquidity — supports growth and flexibility. Company also maintained a long-running, consistent dividend. Read More.
• Neutral Sentiment: Analyst view shifted modestly: Wells Fargo trimmed its price target from $22 to $21 but kept an outperform rating — a slight headwind but still indicates upside from current levels. Read More.
• Negative Sentiment: Book value per share fell ~3.9% year-over-year and the company flagged higher expenses — BVPS erosion is a structural concern for an equity-focused REIT and may limit multiple expansion. Read More.
• Negative Sentiment: Mixed messaging from some call coverage/transcripts — while headline metrics beat, at least one transcript reported a miss on an EPS metric, which can create short-term investor uncertainty and volatility. Read More.

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.