BrightSpire Capital, Inc. (NYSE:BRSP) Sees Significant Increase in Short Interest

Key Points

• BrightSpire Capital, Inc. experienced a significant increase in short interest, rising by 27.6% in August, with a total of 3.7 million shares sold short.
• Several hedge funds raised their holdings in BrightSpire Capital, including Millennium Management LLC with a 281.1% increase, resulting in institutional investors owning 56.57% of the stock.
• The company declared a quarterly dividend of $0.16, resulting in an annualized yield of 10.9%, despite an unusual dividend payout ratio of -290.91%.

BrightSpire Capital, Inc. (NYSE:BRSP - Get Free Report) saw a significant growth in short interest during the month of August. As of August 15th, there was short interest totaling 3,700,000 shares, a growth of 27.6% from the July 31st total of 2,900,000 shares. Approximately 2.9% of the shares of the stock are sold short. Based on an average daily volume of 660,500 shares, the short-interest ratio is presently 5.6 days. Based on an average daily volume of 660,500 shares, the short-interest ratio is presently 5.6 days. Approximately 2.9% of the shares of the stock are sold short.

Hedge Funds Weigh In On BrightSpire Capital

Large investors have recently modified their holdings of the company. Bank of America Corp DE raised its holdings in shares of BrightSpire Capital by 56.0% in the 4th quarter. Bank of America Corp DE now owns 158,229 shares of the company's stock worth $892,000 after purchasing an additional 56,787 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of BrightSpire Capital by 40.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 301,096 shares of the company's stock worth $1,698,000 after purchasing an additional 87,242 shares during the period. Millennium Management LLC raised its holdings in shares of BrightSpire Capital by 281.1% in the 4th quarter. Millennium Management LLC now owns 131,743 shares of the company's stock worth $743,000 after purchasing an additional 97,175 shares during the period. Two Sigma Investments LP raised its holdings in shares of BrightSpire Capital by 13.6% in the 4th quarter. Two Sigma Investments LP now owns 536,444 shares of the company's stock worth $3,026,000 after purchasing an additional 64,384 shares during the period. Finally, Northern Trust Corp raised its holdings in shares of BrightSpire Capital by 7.6% in the 4th quarter. Northern Trust Corp now owns 1,287,299 shares of the company's stock worth $7,260,000 after purchasing an additional 91,263 shares during the period. 56.57% of the stock is currently owned by hedge funds and other institutional investors.

BrightSpire Capital Trading Down 0.9%

NYSE BRSP traded down $0.06 during trading hours on Tuesday, hitting $5.89. 380,886 shares of the company's stock were exchanged, compared to its average volume of 712,781. The business's 50 day moving average is $5.35 and its 200-day moving average is $5.32. BrightSpire Capital has a 12-month low of $4.16 and a 12-month high of $6.45. The firm has a market capitalization of $764.99 million, a P/E ratio of -26.75 and a beta of 1.61. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.54 and a current ratio of 0.54.

BrightSpire Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 14th. Stockholders of record on Monday, June 30th were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 10.9%. The ex-dividend date was Monday, June 30th. BrightSpire Capital's dividend payout ratio (DPR) is -290.91%.

Analysts Set New Price Targets

BRSP has been the topic of a number of analyst reports. Jones Trading reaffirmed a "buy" rating and set a $6.50 price objective on shares of BrightSpire Capital in a research note on Wednesday, July 30th. Barclays reaffirmed an "underweight" rating and set a $5.00 price objective (down previously from $7.00) on shares of BrightSpire Capital in a research note on Tuesday, July 8th. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, BrightSpire Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $6.79.

About BrightSpire Capital

BrightSpire Capital, Inc operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties.

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