BrightSpire Capital (NYSE:BRSP) Hits New 12-Month Low - What's Next?

Key Points

• BrightSpire Capital shares hit a new 52-week low, falling to $4.84 and closing near $4.85, below both the 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward “Hold,” with four Buy ratings and two Sell ratings; the consensus price target is $6.50, above the recent share price.
• The company missed quarterly earnings and revenue expectations, reporting $0.13 in EPS versus $0.15 expected and $48.7 million in revenue versus $64.31 million. BrightSpire continues to pay a $0.16 quarterly dividend, implying a high 13.3% annualized yield.

Shares of BrightSpire Capital, Inc. (NYSE:BRSP - Get Free Report) hit a new 52-week low on Monday . The company traded as low as $4.84 and last traded at $4.85, with a volume of 597650 shares trading hands. The stock had previously closed at $5.00.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on BRSP shares. JonesTrading reissued a "buy" rating and set a $6.50 price target on shares of BrightSpire Capital in a research report on Wednesday, July 29th. B. Riley Financial decreased their price objective on BrightSpire Capital from $7.00 to $6.50 and set a "buy" rating for the company in a research report on Thursday, July 30th. BTIG Research raised BrightSpire Capital from a "neutral" rating to a "buy" rating and set a $7.00 target price on the stock in a research note on Wednesday, April 22nd. Weiss Ratings downgraded BrightSpire Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 26th. Finally, Wall Street Zen raised shares of BrightSpire Capital from a "sell" rating to a "hold" rating in a research report on Sunday. Four analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, BrightSpire Capital currently has an average rating of "Hold" and a consensus target price of $6.50.

BrightSpire Capital Price Performance

The company has a debt-to-equity ratio of 2.75, a current ratio of 0.83 and a quick ratio of 0.83. The stock has a market capitalization of $611.09 million, a P/E ratio of -21.00, a PEG ratio of 3.56 and a beta of 1.29. The stock's fifty day moving average is $5.33 and its 200-day moving average is $5.62.

BrightSpire Capital (NYSE:BRSP - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.02). BrightSpire Capital had a negative net margin of 20.43% and a positive return on equity of 7.01%. The company had revenue of $48.70 million for the quarter, compared to the consensus estimate of $64.31 million. On average, equities analysts anticipate that BrightSpire Capital, Inc. will post 0.47 earnings per share for the current year.

BrightSpire Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 13.3%. The ex-dividend date of this dividend was Tuesday, June 30th. BrightSpire Capital's dividend payout ratio (DPR) is presently -278.26%.

Institutional Investors Weigh In On BrightSpire Capital

A number of large investors 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% in 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. Cerity Partners LLC grew its position in BrightSpire Capital by 9.1% during the 4th quarter. Cerity Partners LLC now owns 29,807 shares of the company's stock worth $167,000 after acquiring an additional 2,480 shares during the last quarter. National Bank of Canada FI increased its holdings in BrightSpire Capital by 50.0% during the 3rd quarter. National Bank of Canada FI now owns 7,500 shares of the company's stock valued at $41,000 after purchasing an additional 2,500 shares in the last quarter. M&T Bank Corp increased its holdings in BrightSpire Capital by 22.5% during the 2nd quarter. M&T Bank Corp now owns 13,641 shares of the company's stock valued at $69,000 after purchasing an additional 2,501 shares in the last quarter. Finally, Abel Hall LLC raised its position in BrightSpire Capital by 7.5% in the 4th quarter. Abel Hall LLC now owns 44,536 shares of the company's stock valued at $249,000 after purchasing an additional 3,123 shares during the last quarter. Institutional investors own 56.57% of the company's stock.

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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