Edgestream Partners L.P. has made a significant investment in Starwood Property Trust, Inc. by acquiring 65,844 shares during the second quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, this acquisition is valued at approximately $1,321,000. This move highlights a growing interest among institutional investors in the real estate investment trust (REIT), which operates in the financial and property sectors.
Several other institutional investors have also adjusted their holdings in Starwood Property Trust (NYSE: STWD). Notably, Lido Advisors LLC increased its stake by 1.5%, now holding 153,131 shares valued at around $3,147,000 after acquiring an additional 2,283 shares. Another significant player, Norges Bank, has entered the market with a new stake valued at approximately $71,492,000. Additionally, Northwestern Mutual Wealth Management Co. raised its position by 99.8%, now owning 7,450 shares worth $150,000 after purchasing 3,721 shares.
The State Board of Administration of Florida Retirement System has increased its stake in Starwood Property Trust by 1.2%, now owning 337,723 shares valued at $6,778,000. Finally, DLD Asset Management LP has also initiated a new position in the company, valued at approximately $692,415,000. Overall, institutional investors and hedge funds control 49.82% of Starwood Property Trust’s stock.
Starwood Property Trust’s Financial Performance
Starwood Property Trust opened at $18.25 on the New York Stock Exchange on November 10, 2023. The company has experienced a 12-month trading range with a low of $16.59 and a high of $21.05. Financially, Starwood boasts a market capitalization of $6.76 billion, a price-to-earnings (PE) ratio of 17.38, and a debt-to-equity ratio of 2.98. The current ratio and quick ratio both stand at 1.33, indicating a stable liquidity position.
In their latest quarterly earnings report released on November 10, 2023, Starwood reported earnings of $0.40 per share, which fell short of the consensus estimate of $0.44 by $0.04. The company achieved revenue of $247.87 million, significantly below analyst estimates of $479.70 million. This represents a 1.9% increase in revenue compared to the same quarter the previous year. Despite the earnings miss, the firm reported a return on equity of 8.41% and a net margin of 20.28%.
Analysts’ Ratings and Market Outlook
Market analysts have recently expressed varied opinions on Starwood Property Trust. Keefe, Bruyette & Woods reduced their target price on the stock from $22.00 to $21.00, maintaining an “outperform” rating. Similarly, Wells Fargo & Company lowered its price target from $23.00 to $22.00, also issuing an “outperform” rating.
In contrast, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating on August 9, 2023. Weiss Ratings reaffirmed a “hold (c)” rating on the shares, while Zacks Research downgraded the stock from “hold” to “strong sell” on October 29, 2023. Overall, three analysts currently rate the stock as a Buy, two as Hold, and one as Sell. MarketBeat notes that Starwood Property Trust has a consensus rating of “Hold” with a target price of $20.63.
Starwood Property Trust, Inc. operates as a real estate investment trust in the United States and internationally. The company is involved in various segments, including Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. Its diverse portfolio includes commercial first mortgages, non-agency residential mortgages, and various other real estate-related investments.
As institutional interest continues to grow, Starwood Property Trust remains a focal point in the investment community, with ongoing assessments of its financial health and market performance.
