BrightSpire Capital (NYSE:BRSP) Hits New 12-Month Low After Earnings Miss

Key Points

• BrightSpire Capital shares fell to a new 52-week low, trading near $5.02 after the company reported quarterly EPS of $0.13, below the $0.15 consensus estimate. Revenue of $55.4 million also missed expectations of $64.31 million.
• The company paid a quarterly dividend of $0.16 per share, equivalent to an annualized $0.64 payout and a 12.9% yield. However, its reported dividend payout ratio was deeply negative at -237.04%.
• Analyst sentiment remains mixed: four analysts rate the stock Buy and two rate it Sell, producing a consensus Hold rating and an average price target of $6.75 versus the recent share price.

BrightSpire Capital, Inc. (NYSE:BRSP - Get Free Report) shares hit a new 52-week low on Wednesday following a dissappointing earnings announcement. The stock traded as low as $5.05 and last traded at $5.0150, with a volume of 361730 shares changing hands. The stock had previously closed at $5.24.

The company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.02). The company had revenue of $55.40 million during the quarter, compared to the consensus estimate of $64.31 million. BrightSpire Capital had a negative net margin of 24.16% and a positive return on equity of 7.46%.

BrightSpire Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 12.9%. The ex-dividend date of this dividend was Tuesday, June 30th. BrightSpire Capital's dividend payout ratio is presently -237.04%.

Analysts Set New Price Targets

Several research firms have weighed in on BRSP. JonesTrading reissued a "buy" rating and issued a $6.50 price objective on shares of BrightSpire Capital in a research report on Wednesday, June 3rd. BTIG Research raised shares of BrightSpire Capital from a "neutral" rating to a "buy" rating and set a $7.00 price target on the stock in a report on Wednesday, April 22nd. Finally, Weiss Ratings downgraded shares of BrightSpire Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $6.75.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Financial Gravity Asset Management Inc. boosted its stake in shares of BrightSpire Capital by 59.2% during the 4th quarter. Financial Gravity Asset Management Inc. now owns 4,835 shares of the company's stock valued at $27,000 after purchasing an additional 1,798 shares in the last quarter. Cassaday & Co Wealth Management LLC purchased a new stake in BrightSpire Capital in the first quarter worth about $32,000. Axiom Investment Management LLC bought a new stake in BrightSpire Capital during the 1st quarter valued at approximately $33,000. National Bank of Canada FI grew its holdings in shares of BrightSpire Capital by 50.0% during the 3rd quarter. National Bank of Canada FI now owns 7,500 shares of the company's stock worth $41,000 after acquiring an additional 2,500 shares during the period. Finally, KBC Group NV purchased a new position in shares of BrightSpire Capital during the 1st quarter worth approximately $48,000. 56.57% of the stock is owned by hedge funds and other institutional investors.

BrightSpire Capital Price Performance

The stock has a market cap of $646.84 million, a P/E ratio of -18.43 and a beta of 1.28. The firm has a 50-day moving average price of $5.50 and a 200-day moving average price of $5.70. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.51 and a current ratio of 0.51.

About BrightSpire Capital

BrightSpire Capital Inc NYSE: BRSP is a real estate investment trust (REIT) specializing in commercial real estate debt. The company primarily originates, acquires and manages a diversified portfolio of mortgage loans, mezzanine loans and preferred equity investments secured by office, retail, industrial, multifamily and hospitality assets across the United States. By focusing on income-producing credit instruments, BrightSpire seeks to deliver attractive risk-adjusted returns to its shareholders through regular dividend distributions.

BrightSpire’s investment strategy spans the capital structure of commercial real estate, with an emphasis on senior mortgages that offer more stable cash flows and downside protection.

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