Starwood Property Trust Inc. STWD Stock Analysis

Starwood Property Trust Inc. stock trades under the ticker STWD & has shown recent bullish behavior that traders & investors should research further into.

STWD stock closed at $20.10/share on 3/7/2023.

Starwood Property Trust Inc. STWD Stock’s Technical Performance Broken Down

Starwood Property Trust Inc. STWD Stock's Technical Performance Over The Past Year
Starwood Property Trust Inc. STWD Stock’s Technical Performance Over The Past Year

STWD Stock Price: $20.10

10 Day Moving Average: $19.58

50 Day Moving Average: $19.84

200 Day Moving Average: $20.44

RSI: 52.16

MACD: -0.106

Yesterday, STWD stock completed a bullish MACD crossover, despite falling -2.24% on the day’s session.

Their RSI is neutral & their recent trading volumes have been higher than usual.

The momentum behind their MACD crossover is mostly due to their bullish gap up on Monday, and traders & investors would be wise to wait to see how they perform in the coming days to see if the gap is not filled due to external macro conditions impacting the stock.

STWD stock has support at the $20.10 price level where they currently sit, as well as at the $19.84 (50 day moving average), $19.58 (10 day moving average) & $19.50/share price levels, as they try to break out above their $20.36, $20.37, $20.41 & $20.44 (200 day moving average)/share price levels.

Starwood Property Trust Inc. STWD Stock As A Long-Term Investment

Investors with longer time horizons will like STWD stock’s valuation metrics, with a 7.42 P/E (ttm) & a 0.93 P/B (mrq).

They recently reported -13.2% Quarterly Revenue Growth Y-o-Y, with 53.1% Quarterly Earnings Growth Y-o-Y.

Their balance sheet will require a closer examination before investment, with $369.68M of Total Cash (mrq) & $20.64B of Total Debt (mrq).

STWD stock pays a 9.34% dividend, which may not be sustainable at such a high level for the long-run, as their payout ratio is 70.07%.

46.12% of STWD stock’s outstanding share float is owned by institutional investors.

Starwood Property Trust Inc. STWD Stock As A Short-Term Trade Using Options

Traders with shorter time horizons can trade options to profit from STWD stock’s price movements, while protecting their portfolios from volatility.

I am looking at the contracts with the 4/21 expiration date.

The $20, $18 & $19 call options are in-the-money, listed from highest to lowest level of open interest.

The $21, $24 & $23 puts are also all in-the-money, with the former being more liquid than the latter strikes.

Tying It All Together

STWD stock has many interesting characteristics that traders & investors are sure to find appealing.

Investors will like their valuation metrics and dividend yield, but may want to look for clues into its sustainability over the long-run.

Traders will like their recent technical performance & how liquid their options are.

All-in-all, it is worth taking a closer look into STWD stock to see how it fits into your portfolio strategy.

*** I DO NOT OWN SHARES OR OPTIONS CONTRACT POSITIONS IN STWD AT THE TIME OF PUBLISHING THIS ARTICLE ***