Views of Wall Street’s Leading Experts on Starwood Property Trust Inc.

Starwood Property Trust Inc. (NYSE: STWD) stock fell -2.16% on Friday to $22.21 against a previous-day closing price of $22.70. With 2.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.95 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $22.74 whereas the lowest price it dropped to was $22.16. The 52-week range on STWD shows that it touched its highest point at $26.35 and its lowest point at $19.69 during that stretch. It currently has a 1-year price target of $27.21. With its current market cap of 6.95 billion, STWD has annualized dividend of $1.92 while the current yield stands at 8.64%. Beta for the stock currently stands at 1.48.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STWD was down-trending over the past week, with a drop of -4.51%, but this was down by -5.45% over a month. Three-month performance surged to 3.30% while six-month performance fell -6.72%. The stock lost -12.21% in the past year, while it has lost -8.60% so far this year. A look at the trailing 12-month EPS for STWD yields 2.43 with Next year EPS estimates of 2.28. For the next quarter, that number is 0.52. This implies an EPS growth rate of 31.90% for this year and 0.18% for next year. EPS is expected to grow by 4.99% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 0.30%.

Float and Shares Shorts:

At present, 305.04 million STWD shares are outstanding with a float of 293.58 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.44 million, which was 1.77% higher than short shares on Jun 14, 2022. In addition to Mr. Barry Stuart Sternlicht as the firm’s CEO & Non-Independent Exec. Chairman, Mr. Jeffrey F. DiModica C.F.A., CFA serves as its Pres & MD.


Institutional Ownership:

Through their ownership of 47.55% of STWD’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.26% of STWD, in contrast to 24.39% held by mutual funds. Shares owned by individuals account for 22.30%. As the largest shareholder in STWD with 8.63% of the stake, The Vanguard Group, Inc. holds 26,490,214 shares worth 26,490,214. A second-largest stockholder of STWD, BlackRock Fund Advisors, holds 15,005,891 shares, controlling over 4.89% of the firm’s shares. Morgan Stanley Smith Barney LLC is the third largest shareholder in STWD, holding 5,626,753 shares or 1.83% stake. With a 2.80% stake in STWD, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 8,576,769 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.40% of STWD stock, is the second-largest Mutual Fund holder. It holds 7,379,633 shares valued at 169.21 million. Vanguard Small Cap Value Index Fu holds 1.59% of the stake in STWD, owning 4,883,237 shares worth 111.97 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STWD since 8 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STWD analysts setting a high price target of $30.00 and a low target of $25.00, the average target price over the next 12 months is $26.94. Based on these targets, STWD could surge 35.07% to reach the target high and rise by 12.56% to reach the target low. Reaching the average price target will result in a growth of 21.3% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STWD will report FY 2022 earnings on 02/24/2023. Analysts have provided yearly estimates in a range of $2.44 being high and $2.10 being low. For STWD, this leads to a yearly average estimate of $2.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Starwood Property Trust Inc. surprised analysts by $0.00 when it reported $0.51 EPS against a consensus estimate of $0.51. The surprise factor in the prior quarter was $0.24. Based on analyst estimates, the high estimate for the next quarter is $0.58 and the low estimate is $0.49. The average estimate for the next quarter is thus $0.52.

Summary of Insider Activity:

Insiders traded STWD stock several times over the past three months with 4 Buys and 1 Sells. In these transactions, 340,075 shares were bought while 2,881 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 4 over the past year. The total number of shares bought during that period was 2,598,819 while 236,229 shares were sold.

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