Brightstar Lottery (NYSE:BRSL) Sets New 1-Year Low - Should You Sell?

Key Points

• Brightstar Lottery shares hit a new 52-week low, trading as low as $12.02 (last $12.2440) on heavy volume of about 1.51 million shares.
• Analyst sentiment is mixed — the consensus is an average rating of “Hold” with an average target of $17, while recent reports range from “strong buy” to “strong sell” and several price targets were cut.
• The stock yields 7.5% after a $0.23 quarterly dividend, but the payout ratio is an unsustainably high 121% and liquidity/leverage metrics are weak (current ratio 0.76, debt/equity 2.55), signaling financial risk despite the high yield.

Brightstar Lottery (NYSE:BRSL - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $12.02 and last traded at $12.2440, with a volume of 1514546 shares changing hands. The stock had previously closed at $12.25.

Wall Street Analyst Weigh In

BRSL has been the topic of several recent analyst reports. Stifel Nicolaus cut their price objective on shares of Brightstar Lottery from $21.00 to $20.00 and set a "buy" rating on the stock in a report on Thursday, February 19th. Zacks Research downgraded shares of Brightstar Lottery from a "hold" rating to a "strong sell" rating in a report on Monday, March 30th. Weiss Ratings initiated coverage on shares of Brightstar Lottery in a report on Tuesday, February 3rd. They set a "hold (c-)" rating on the stock. Truist Financial upgraded shares of Brightstar Lottery from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 3rd. Finally, Jefferies Financial Group cut their price objective on shares of Brightstar Lottery from $15.00 to $14.00 and set a "hold" rating on the stock in a report on Monday, April 6th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $17.00.

Brightstar Lottery Stock Performance

The stock has a fifty day moving average of $13.18. The company has a current ratio of 0.76, a quick ratio of 0.72 and a debt-to-equity ratio of 2.55. The firm has a market cap of $2.29 billion, a P/E ratio of 16.11 and a beta of 1.11.

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

Brightstar Lottery Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 7.5%. The ex-dividend date was Tuesday, March 10th. Brightstar Lottery's dividend payout ratio is 121.05%.

Hedge Funds Weigh In On Brightstar Lottery

Hedge funds and other institutional investors have recently bought and sold shares of the business. Nomura Asset Management Co. Ltd. acquired a new position in Brightstar Lottery in the 4th quarter worth approximately $31,000. NewEdge Advisors LLC acquired a new position in Brightstar Lottery in the 4th quarter worth approximately $32,000. Rockefeller Capital Management L.P. acquired a new position in Brightstar Lottery in the 4th quarter worth approximately $52,000. Empowered Funds LLC acquired a new position in Brightstar Lottery in the 4th quarter worth approximately $57,000. Finally, Quadrant Capital Group LLC purchased a new stake in Brightstar Lottery in the 4th quarter worth approximately $60,000. Institutional investors and hedge funds own 44.33% of the company's stock.

Brightstar Lottery Company Profile

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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