Starwood Property Trust (STWD) Shares Soar 7.70% After Price Target Cut

Starwood Property Trust (STWD) shares surged by 7.70%, marking a significant rebound after hitting its lowest level since May 2023, with an intraday decline of 3.99%.

Keefe, Bruyette & Woods recently adjusted their price target for Starwood Property Trust, lowering it from $22.00 to $21.00 while maintaining an "outperform" rating. This adjustment reflects the analysts' cautious outlook on the company's near-term prospects, potentially influencing investor sentiment and contributing to the recent volatility in STWD's stock price.

Additionally, the California Public Employees Retirement System reduced its position in Starwood Property Trust by 12.9% during the fourth quarter. This move by a major institutional investor could signal a shift in confidence or strategy, further impacting the stock's performance. The reduction in holdings may have contributed to the recent decline in STWD's share price, as institutional investors often set trends that retail investors follow.