Edgestream Partners L.P. has established a new position in Starwood Property Trust, Inc. (NYSE:STWD) by acquiring 65,844 shares during the second quarter of this fiscal year. According to the firm’s recent 13F filing with the Securities and Exchange Commission, the investment is valued at approximately $1.32 million.
Several notable institutional investors have also adjusted their stakes in Starwood Property Trust, reflecting growing interest in the real estate investment trust (REIT). Lido Advisors LLC increased its position by 1.5%, now holding 153,131 shares worth about $3.15 million after acquiring an additional 2,283 shares in the last quarter. Norges Bank significantly boosted its stake, purchasing a new position valued at approximately $71.49 million.
Both Northwestern Mutual Wealth Management Co. and the State Board of Administration of Florida Retirement System also enhanced their investments. Northwestern Mutual’s stake surged by 99.8%, increasing its holdings to 7,450 shares valued at $150,000. Meanwhile, the Florida Retirement System added 3,870 shares, raising its total to 337,723 shares worth about $6.78 million. DLD Asset Management LP also entered the fray with a new investment valued at around $692,415. Currently, institutional investors and hedge funds collectively own 49.82% of Starwood’s stock.
Starwood Property Trust Stock Performance
On the New York Stock Exchange, Starwood Property Trust opened at $18.25 on Friday. The REIT has experienced a 12-month low of $16.59 and a 12-month high of $21.05. Financial metrics reveal a debt-to-equity ratio of 2.98, a current ratio of 1.33, and a quick ratio of 1.33. The market capitalization of Starwood Property Trust stands at $6.76 billion, with a price-to-earnings (PE) ratio of 17.38 and a beta of 1.14. The firm’s fifty-day moving average price is $18.43, while the two-hundred-day moving average price is $19.53.
Starwood Property Trust reported its quarterly earnings on November 10, 2023, revealing earnings per share (EPS) of $0.40. This figure fell short of the consensus estimate of $0.44 by $0.04. The REIT recorded a return on equity of 8.41% and a net margin of 20.28%. Revenue for the quarter reached $247.87 million, significantly below analyst estimates of $479.70 million. In the same period last year, the company posted an EPS of $0.48, marking a 1.9% increase in revenue compared to the previous year.
Wall Street Analysts React
Recent assessments from various brokerages have influenced Starwood Property Trust’s market outlook. Keefe, Bruyette & Woods reduced their target price from $22.00 to $21.00, maintaining an “outperform” rating. Similarly, Wells Fargo & Company lowered their price objective from $23.00 to $22.00, while also issuing an “outperform” rating.
Wall Street Zen has upgraded the stock from a “sell” to a “hold” rating. Weiss Ratings reaffirmed a “hold (c)” rating, and Zacks Research decreased their rating from “hold” to “strong sell.” Presently, three analysts have rated Starwood with a Buy rating, two maintain a Hold rating, and one has assigned a Sell rating. According to data from MarketBeat, the company holds a consensus rating of “Hold” with a target price averaging $20.63.
Starwood Property Trust operates as a real estate investment trust (REIT) both in the United States and internationally. The company engages in several segments, including Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The Commercial and Residential Lending segment encompasses a range of financial services, including the origination and management of commercial first mortgages, residential mortgages, and various real estate-related debt investments.
As more institutional investors show confidence in Starwood Property Trust, the firm appears well-positioned to navigate the complexities of the real estate market.
