Starwood Property Trust Inc (STWD) Stock: Understanding the Volatility

In the past week, STWD stock has gone down by -5.13%, with a monthly gain of 1.07% and a quarterly surge of 4.38%. The volatility ratio for the week is 1.48%, and the volatility levels for the last 30 days are 1.20% for Starwood Property Trust Inc. The simple moving average for the past 20 days is -1.36% for STWD’s stock, with a -1.00% simple moving average for the past 200 days.

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 18.10x, which is above its average ratio. Moreover, the 36-month beta value for STWD is 1.72. 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.”

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The public float for STWD is 297.39M and currently, short sellers hold a 4.27% of that float. On September 10, 2024, STWD’s average trading volume was 2.44M shares.

STWD) stock’s latest price update

Starwood Property Trust Inc (NYSE: STWD)’s stock price has soared by 0.61 in relation to previous closing price of 19.65. Nevertheless, the company has seen a loss of -5.13% in its stock price over the last five trading days. prnewswire.com reported 2024-09-05 that GREENWICH, Conn., Sept. 5, 2024 /PRNewswire/ — Starwood Property Trust, Inc. (NYSE: STWD) (the “Company”) today announced that the underwriters for the Company’s recently completed public offering of 17,500,000 shares of its common stock have fully exercised their option to purchase an additional 2,625,000 shares.

Analysts’ Opinion of STWD

Many brokerage firms have already submitted their reports for STWD stocks, with Keefe Bruyette repeating the rating for STWD by listing it as a “Outperform.” The predicted price for STWD in the upcoming period, according to Keefe Bruyette is $22.50 based on the research report published on September 05, 2024 of the current year 2024.

BTIG Research, on the other hand, stated in their research note that they expect to see STWD reach a price target of $24. The rating they have provided for STWD stocks is “Buy” according to the report published on July 19th, 2024.

STWD Trading at 0.03% 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 -11.31% of loss for the given period.

Volatility was left at 1.20%, however, over the last 30 days, the volatility rate increased by 1.48%, as shares surge +1.23% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.24% upper at present.

During the last 5 trading sessions, STWD fell by -5.13%, which changed the moving average for the period of 200-days by unch in comparison to the 20-day moving average, which settled at $20.05. In addition, Starwood Property Trust Inc saw -5.95% 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:

  • 0.67 for the present operating margin
  • 0.91 for the gross margin

The net margin for Starwood Property Trust Inc stands at 0.16. The total capital return value is set at 0.02. Equity return is now at value 5.43, with 0.50 for asset returns.

Based on Starwood Property Trust Inc (STWD), the company’s capital structure generated 0.75 points at debt to capital in total, while cash flow to debt ratio is standing at 0.03. The debt to equity ratio resting at 2.96. The interest coverage ratio of the stock is 0.98.

Currently, EBITDA for the company is 1.71 billion with net debt to EBITDA at 9.45. When we switch over and look at the enterprise to sales, we see a ratio of 11.45. The receivables turnover for the company is 10.88for trailing twelve months and the total asset turnover is 0.03.

Conclusion

To wrap up, the performance of Starwood Property Trust Inc (STWD) has been mixed 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.

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