Starwood Property Trust, Inc. (NYSE:STWD) is now being followed by JP Morgan, as they initiated the stock at Overweight on September 21. Analysts at Raymond James, started covering the stock on March 27 with a Outperform rating. The stock won favor of Compass Point analysts who expressed their confidence in it using an upgrade from Neutral to Buy on October 25.
Starwood Property Trust, Inc. (STWD) hit an intraday high Thursday at $22.42. The shares finished at $22.42, after trading as low as $22.08 earlier in the session. It rose 0.45% in recent trade and currently has a stock-market value of $6.24B. Trading activity significantly improved as the volume at ready counter increased to 3,209,983 shares versus 2,052,210 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,022,014 shares. The stock is now 15.15% above against its bear-market low of $19.47 on February 09, 2018. It has retreated -2.77% since it’s 52-week high of $23.04 reached in August. Now the market price is up 3.41% on the year and up 5.01% YTD.
STWD’s 50 day simple moving average (SMA 50) price is $21.74 and its 200-day simple moving average (SMA 200) price is $21.68. The company’s stock currently has a total float of 266.65M shares. Its weekly volatility is hovering around 1.44% and felt 1.35% volatility in price over a month. On the upside, the share price will test short term resistance at around $22.53. On a downside, the stock is likely to find some support, which begins at $22.19. The failure to get near-term support could push it to $21.97.
Separately, it has been reported that multiple insider activity took place at Starwood Property Trust, Inc. (STWD). COO and General Counsel Sossen Andrew Jay sold 11,270 shares for $108,106 in transaction occurred on 2017/09/19. After making this transaction, the COO and General Counsel owns a direct stake of 247,264 shares, worth $2,423,737, as per the last closing price. On 2017/09/19 Paniry Rina, CFO at STWD, dumped 6,867 shares at an average price of $21.96 per share. The selling total is valued at $2,242,583.
Director, Douglas Camille J. had divested 4,500 shares for $20,944 through a trade on 2017/05/12. Following this activity, the insider holds 97,290 shares worth $469,565 as of recent close. Wall Street’s most bullish Starwood Property Trust, Inc. (NYSE:STWD) analysts are predicting the share price to blow past $25 per share during the next 12 months. The current median share price forecast by them is $24, suggesting that the stock could increase 7.05% in that time frame. The average price target of $23.81 calls for a nearly 6.2% increase in the stock price.
When looking at valuations, Starwood Property Trust, Inc. (STWD) has a cheap P/E of 15.37x as compared to industry average of 47.22x. Moreover, it trades for 10.06 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.29x price/book and 5.89x price/sales. Compared to others, Starwood Property Trust, Inc. is in a different league with regards to profitability, having net margins of 36.2%. To put some perspective around this, the industry’s average net margin is 35.6%. STWD’s ROE is 8.5%, which is also considerably worse than the industry’s ROE of 14.32%.
Shares of Starwood Property Trust, Inc. (STWD) have gained 2.7% since the company’s last earnings report. Over the past 12 fiscal quarters, Starwood Property Trust, Inc. (NYSE:STWD) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 2 quarters (16%), whereas at 2 occasion EPS met analyst expectations. STWD last reported earnings on November 09, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.57 per share, -92.35% change on the same period last year. That was better than consensus for $0.53. Revenue for the recent quarter stood at $285.72 million, up 26% on last year and above the $277.19 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $290 million to $318.41 million, which should be compared with $262.45 million generated last year. EPS is seen in a range of $0.53 to $0.56, against the $0.55 reported a year ago.