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.
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.
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.
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.