Brightstar Lottery (NYSE:BRSL) Hits New 1-Year Low - Here's Why

Key Points

• Brightstar Lottery hit a new 52-week low on Friday, trading as low as $12.53 (last $12.566) on volume of 414,048 shares, down about 1.8% from the prior close.
• Wall Street has a consensus rating of Buy with an average price target of $20.00, reflecting one Strong Buy, one Buy and one Hold from recent analyst reports.
• The company yields 7.3% ($0.92 annualized) but has a payout ratio of 121% and stretched fundamentals—debt-to-equity of 2.55 and a current ratio of 0.76—raising dividend sustainability and liquidity concerns.

Brightstar Lottery (NYSE:BRSL - Get Free Report) reached a new 52-week low during trading on Friday . The company traded as low as $12.53 and last traded at $12.5660, with a volume of 414048 shares. The stock had previously closed at $12.88.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on BRSL shares. Weiss Ratings started coverage on shares of Brightstar Lottery in a research report on Tuesday, February 3rd. They issued a "hold (c-)" rating for the company. Stifel Nicolaus decreased their price objective on shares of Brightstar Lottery from $21.00 to $20.00 and set a "buy" rating on the stock in a research report on Thursday, February 19th. Finally, Truist Financial raised shares of Brightstar Lottery from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $20.00.

Brightstar Lottery Stock Down 1.8%

The company has a debt-to-equity ratio of 2.55, a current ratio of 0.76 and a quick ratio of 0.72. The company has a market capitalization of $2.36 billion, a price-to-earnings ratio of 16.64 and a beta of 1.07.

Brightstar Lottery (NYSE:BRSL - Get Free Report) last released its quarterly earnings data on Sunday, February 15th. The company reported $0.36 earnings per share (EPS) for the quarter. The firm had revenue of $668.00 million for the quarter. Brightstar Lottery had a net margin of 5.85% and a return on equity of 9.81%.

Brightstar Lottery Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th were given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date was Tuesday, March 10th. Brightstar Lottery's payout ratio is currently 121.05%.

Institutional Trading of Brightstar Lottery

Several hedge funds have recently modified their holdings of BRSL. Lazard Asset Management LLC bought a new position in Brightstar Lottery during the fourth quarter valued at $147,133,000. Brown Advisory Inc. bought a new stake in Brightstar Lottery in the fourth quarter worth $44,820,000. State Street Corp bought a new stake in Brightstar Lottery in the fourth quarter worth $29,860,000. Royce & Associates LP purchased a new position in Brightstar Lottery during the fourth quarter worth $24,887,000. Finally, Geode Capital Management LLC bought a new position in Brightstar Lottery during the fourth quarter valued at $19,684,000. 44.33% of the stock is owned by hedge funds and other institutional investors.

About Brightstar Lottery

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services.

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