Starwood Property Trust Inc. [STWD] is -42.12% lower this YTD. Is it still time to buy?

Starwood Property Trust Inc. [NYSE: STWD] gained 3.01% or 0.42 points to close at $14.39 with a heavy trading volume of 3081241 shares. The company report on October 20, 2020 that Starwood Property Trust Prices Inaugural Private Offering of Sustainability Bonds.

Starwood Property Trust, Inc. (NYSE: STWD) (the “Company”) today announced that it has priced its private offering of $300 million aggregate principal amount of its 5.50% unsecured senior notes due 2023 (the “Notes”). The Notes priced at 100.00% of the principal amount and the settlement of the offering is expected to occur on November 2, 2020, subject to customary closing conditions.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Eligible green and/or social projects are projects that meet specified eligibility criteria in alignment with the four core pillars of the Green Bond Principles, 2018, Social Bond Principles, 2020 and Sustainability Bond Guidelines, 2018, and include investments in, financings of and/or acquisitions of one or more of the following: (i) renewable energy, (ii) green buildings and (iii) affordable housing. Net proceeds allocated to previously incurred costs associated with Eligible Green and/or Social Projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds to fund the redemption of the remaining $250 million outstanding principal amount of its 3.625% Senior Notes due 2021 (assuming the completion of the partial redemption of $250 million outstanding principal amount of such notes on November 2, 2020), and for general corporate purposes, which may include the repayment of outstanding indebtedness. This press release does not constitute a notice of redemption.

It opened the trading session at $14.14, the shares rose to $14.53 and dropped to $14.13, the range by which the price of stock traded the whole day. The daily chart for STWD points out that the company has recorded 6.36% gains over the past six months. However, it is still -89.59% lower than its most recent low trading price.

If we look at the average trading volume of 2.28M shares, STWD reached to a volume of 3081241 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Starwood Property Trust Inc. [STWD]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STWD shares is $18.58 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STWD stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Starwood Property Trust Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 02, 2019. While these analysts kept the previous recommendation, JP Morgan raised their target price to Overweight. The new note on the price target was released on September 21, 2018, representing the official price target for Starwood Property Trust Inc. stock. Previously, the target price had yet another raise to $24, while Raymond James analysts kept a Outperform rating on STWD stock.

The Average True Range (ATR) for Starwood Property Trust Inc. is set at 0.48, with the Price to Sales ratio for STWD stock in the period of the last 12 months amounting to 3.62. The Price to Book ratio for the last quarter was 0.90, with the Price to Cash per share for the same quarter was set at 1.20. Price to Free Cash Flow for STWD in the course of the last twelve months was 5.98.

Trading performance analysis for STWD stock

Starwood Property Trust Inc. [STWD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.11. With this latest performance, STWD shares dropped by -7.34% in over the last four-week period, additionally plugging by 6.36% over the last 6 months – not to mention a drop of -41.00% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for STWD stock in for the last two-week period is set at 42.32, with the RSI for the last a single of trading hit 42.20, and the three-weeks RSI is set at 43.50 for Starwood Property Trust Inc. [STWD]. The present Moving Average for the last 50 days of trading for this stock 15.38, while it was recorded at 14.22 for the last single week of trading, and 16.16 for the last 200 days.

Starwood Property Trust Inc. [STWD]: A deeper dive into fundamental analysis

Starwood Property Trust Inc. [STWD]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Starwood Property Trust Inc. posted 0.52/share EPS, while the average EPS was predicted by analysts to be reported at 0.52/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for STWD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Starwood Property Trust Inc. go to -0.94%.

An analysis of insider ownership at Starwood Property Trust Inc. [STWD]

There are presently around $2,175 million, or 55.60% of STWD stock, in the hands of institutional investors. The top three institutional holders of STWD stocks are: VANGUARD GROUP INC with ownership of 24,234,525, which is approximately -5.538% of the company’s market cap and around 3.40% of the total institutional ownership; BLACKROCK INC., holding 17,278,418 shares of the stock with an approximate value of $241.38 million in STWD stocks shares; and MORGAN STANLEY, currently with $97.77 million in STWD stock with ownership of nearly 51.533% of the company’s market capitalization.

176 institutional holders increased their position in Starwood Property Trust Inc. [NYSE:STWD] by around 24,218,520 shares. Additionally, 240 investors decreased positions by around 24,574,022 shares, while 60 investors held positions by with 106,928,205 shares. The mentioned changes placed institutional holdings at 155,720,747 shares, according to the latest SEC report filing. STWD stock had 53 new institutional investments in for a total of 8,198,936 shares, while 87 institutional investors sold positions of 5,120,158 shares during the same period.

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