BrightSpire Capital Inc. (BRSP): Here Are Some Research Recommendations

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BrightSpire Capital Inc. (NYSE:BRSP) finished Friday with an addition of $0.02 to close at $6.23, an upside of 0.32 percent. An average of 656,100 shares of common stock have been traded in the last five days. There was a fall of -$0.45 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 657,925 shares traded, while the 50-day average volume stands at 587,342.

BRSP stock has decreased by -12.75% in the last month. The company shares reached their 1-month lowest point of $6.11 on 12/30/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $6.13 and a high of $10.42 in 52 weeks. It has reached a new high 1 time so far this year and lost -39.28% or -$4.03 in price. In spite of this, the price is down -40.21% from the 52-week high.


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Valuation Metrics

BrightSpire Capital Inc. (BRSP) has a trailing price-to-earnings (P/E) ratio of 6.59. The stock’s beta is 1.69. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.85, the price-to-book (PB) ratio at 0.56, and the price-to-cash flow ratio at 17.95.

The company has a payout ratio of 80.90%. The company’s most recent quarterly dividend payment was $0.20 a share, without any change from last year. Its latest increase dividend $0.01 reported on Thursday June 16 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 2.97 and a total debt to equity ratio of 2.97 for the quarter ending June 29. Its gross profit as reported stood at -$46.54 million compared to revenue of $224.48 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, BrightSpire Capital Inc.’s return on assets was 2.10%.

Earnings Surprise

For the three-month period that ended June 29, BrightSpire Capital Inc. had $1.34 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$20.46 million in the quarter, while revenues of $34.29 million were shrunk -242.42%. The analyst consensus anticipated BrightSpire Capital Inc.’s latest quarter earnings to come in at $0.23 per share, but it turned out to be $0.24, a 4.30% surprise. For the quarter, EBITDA amounted to -$11.45 million. At the end of the quarter ending June 29, BrightSpire Capital Inc.’s stock balance sheet showed total debt was $4.22 billion. Shareholders own equity worth $128.97 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at BrightSpire Capital Inc. (BRSP) price momentum. RSI 9-day as of the close on 30 December was 22.56%, suggesting the stock is oversold, with historical volatility in this time frame at 30.38%.

As of today, BRSP’s price is $6.44 -6.74% or -$0.45 from its 5-day moving average. BRSP is currently trading -12.50% lower than its 20-day SMA and -29.12% lower than its 100-day SMA. However, the stock’s current price level is -11.38% below the SMA50 and -31.01% below the SMA200.

The stochastic %K and %D were 5.59% and 9.24%, respectively, and the average true range (ATR) was 0.18. With the 14-day stochastic at 10.91% and the average true range at 0.19, the RSI (14) stands at 28.29%. The stock has reached -0.30 on the 9-day MACD Oscillator while the 14-day reading was at -0.40.

Analyst Ratings

BTIG Research downgraded BrightSpire Capital Inc. (NYSE: BRSP) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for BrightSpire Capital Inc. (BRSP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BRSP, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 3 others rate it as a “buy”.

What is BRSP’s price target for the next 12 months?

Analysts predict a range of price targets between $8.00 and $12.50, with a median target of $10.00. Taking a look at these predictions, the average price target given by analysts for BrightSpire Capital Inc. (BRSP) stock is $10.20.

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