Brightstar Lottery (NYSE:BRSL) Sets New 12-Month Low - Here's Why

Key Points

• Brightstar Lottery hit a new 52-week low of $12.19 (last $12.265) on heavy volume (~1.7M shares) and is down about 2.2%; analysts' consensus rating is Hold with a $17 consensus price target.
• The company pays a quarterly dividend of $0.23 (annualized $0.92), implying a 7.5% yield, but the dividend payout ratio is roughly 121%, which raises sustainability concerns.
• Latest quarter showed $0.36 EPS on $668M revenue, while the balance sheet reveals elevated leverage (debt-to-equity 2.55) and low liquidity (current ratio 0.76), signaling financial risk despite profitability.

Brightstar Lottery (NYSE:BRSL - Get Free Report)'s share price hit a new 52-week low on Wednesday . The stock traded as low as $12.19 and last traded at $12.2650, with a volume of 1706471 shares traded. The stock had previously closed at $12.54.

Analysts Set New Price Targets

Several brokerages recently weighed in on BRSL. Weiss Ratings began coverage on Brightstar Lottery in a research report on Tuesday, February 3rd. They issued a "hold (c-)" rating for the company. Zacks Research lowered Brightstar Lottery from a "hold" rating to a "strong sell" rating in a research report on Monday, March 30th. Stifel Nicolaus lowered their price objective on Brightstar Lottery from $21.00 to $20.00 and set a "buy" rating for the company in a research report on Thursday, February 19th. Truist Financial upgraded Brightstar Lottery from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. Finally, Jefferies Financial Group lowered their price objective on Brightstar Lottery from $15.00 to $14.00 and set a "hold" rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $17.00.

Brightstar Lottery Stock Down 2.2%

The firm has a market cap of $2.29 billion, a P/E ratio of 16.14 and a beta of 1.11. 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 business has a 50-day moving average of $13.25.

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

Brightstar Lottery Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 7.5%. The ex-dividend date was Tuesday, March 10th. Brightstar Lottery's dividend payout ratio (DPR) is currently 121.05%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of BRSL. Gabelli Funds LLC purchased a new position in shares of Brightstar Lottery during the fourth quarter worth $7,388,000. Gamco Investors INC. ET AL purchased a new position in shares of Brightstar Lottery during the fourth quarter worth $4,255,000. GABELLI & Co INVESTMENT ADVISERS INC. purchased a new position in shares of Brightstar Lottery during the fourth quarter worth $2,012,000. HighTower Advisors LLC purchased a new position in shares of Brightstar Lottery during the fourth quarter worth $4,541,000. Finally, ProShare Advisors LLC purchased a new position in shares of Brightstar Lottery during the fourth quarter worth $297,000. 44.33% of the stock is currently owned by hedge funds and other institutional investors.

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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