Starwood Property Trust Inc (NYSE: STWD)’s stock price has decreased by -3.54 compared to its previous closing price of 19.89. However, the company has seen a -2.91% decrease in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-03 that I am closely monitoring Starwood Property Trust due to its role as a major commercial real estate mortgage company and a source of income for investors. Mounting headwinds, including higher interest rates and inflation, are causing concerns for the commercial real estate industry. STWD has a strong balance sheet and prudent financial management, which provides stability and income potential for investors.
Is It Worth Investing in Starwood Property Trust Inc (NYSE: STWD) Right Now?
The price-to-earnings ratio for Starwood Property Trust Inc (NYSE: STWD) is 17.95x, which is above its average ratio. Moreover, the 36-month beta value for STWD is 1.68. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 1 as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for STWD is 294.89M and currently, short sellers hold a 5.27% of that float. On April 10, 2024, STWD’s average trading volume was 2.15M shares.
STWD’s Market Performance
STWD’s stock has seen a -2.91% decrease for the week, with a -6.09% drop in the past month and a -8.86% fall in the past quarter. The volatility ratio for the week is 1.57%, and the volatility levels for the past 30 days are at 1.73% for Starwood Property Trust Inc The simple moving average for the past 20 days is -4.60% for STWD’s stock, with a -4.13% simple moving average for the past 200 days.
Analysts’ Opinion of STWD
Many brokerage firms have already submitted their reports for STWD stocks, with BofA Securities repeating the rating for STWD by listing it as a “Neutral.” The predicted price for STWD in the upcoming period, according to BofA Securities is $21.50 based on the research report published on March 04, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see STWD reach a price target of $21. The rating they have provided for STWD stocks is “Neutral” according to the report published on December 06th, 2023.
Keefe Bruyette gave a rating of “Mkt Perform” to STWD, setting the target price at $20 in the report published on October 10th of the previous year.
STWD Trading at -4.06% from the 50-Day Moving Average
After a stumble in the market that brought STWD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -13.93% of loss for the given period.
Volatility was left at 1.73%, however, over the last 30 days, the volatility rate increased by 1.57%, as shares sank -6.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.32% lower at present.
During the last 5 trading sessions, STWD fell by -2.81%, which changed the moving average for the period of 200-days by +4.21% in comparison to the 20-day moving average, which settled at $20.05. In addition, Starwood Property Trust Inc saw -8.73% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at STWD starting from DiModica Jeffrey F., who sale 100,000 shares at the price of $20.28 back on Mar 28 ’24. After this action, DiModica Jeffrey F. now owns 1,226,673 shares of Starwood Property Trust Inc, valued at $2,028,330 using the latest closing price.
DiModica Jeffrey F., the President of Starwood Property Trust Inc, sale 25,000 shares at $20.33 during a trade that took place back on Feb 01 ’24, which means that DiModica Jeffrey F. is holding 925,984 shares at $508,242 based on the most recent closing price.
Stock Fundamentals for STWD
Current profitability levels for the company are sitting at:
- 0.46 for the present operating margin
- 0.94 for the gross margin
The net margin for Starwood Property Trust Inc stands at 0.21. The total capital return value is set at 0.01. Equity return is now at value 5.22, with 0.45 for asset returns.
Based on Starwood Property Trust Inc (STWD), the company’s capital structure generated 0.76 points at debt to capital in total, while cash flow to debt ratio is standing at 0.02. The debt to equity ratio resting at 3.12. The interest coverage ratio of the stock is 0.5.
Currently, EBITDA for the company is 1.71 billion with net debt to EBITDA at 10.71. When we switch over and look at the enterprise to sales, we see a ratio of 15.72. The receivables turnover for the company is 8.0for trailing twelve months and the total asset turnover is 0.02.
Conclusion
To wrap up, the performance of Starwood Property Trust Inc (STWD) has been bad in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
