Starwood Property Trust (STWD) Soars 1.78% on JP Morgan Price Target Hike

Starwood Property Trust (STWD) shares surged 1.78% today, marking the fourth consecutive day of gains, with a total increase of 5.76% over the past four days. The share price reached its highest level since March 2025, with an intraday gain of 2.08%.

The strategy of buying STWD shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.16% annualized return and a maximum drawdown of 17.95%. However, the benchmark’s annualized return was higher at 13.81%, indicating that while the strategy provided some growth, it underperformed the broader market. The portfolio’s 66.88% positive months and the benchmark’s 69.38% positive months suggest that both experienced volatility, with the benchmark being slightly more resilient.

Starwood Property Trust's recent stock price movements can be attributed to several key factors. The company's first-quarter 2025 earnings results revealed a decline in revenues and book value per share, despite a decrease in expenses. This financial performance fell short of market expectations, particularly in terms of revenue generation.

Additionally, JP Morgan recently adjusted its price target for Starwood Property Trust, raising it from $19 to $19.50. This adjustment reflects a slightly more optimistic outlook from the firm, which may have contributed to the positive sentiment surrounding the stock.