BrightSpire Capital (NYSE:BRSP) Shares Gap Down on Disappointing Earnings

Shares of BrightSpire Capital, Inc. (NYSE:BRSP) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.97, but opened at $5.56. BrightSpire Capital shares last traded at $5.71, with a volume of 201,519 shares changing hands.

The company reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.03). The firm had revenue of $17.46 million during the quarter, compared to analysts’ expectations of $65.81 million. BrightSpire Capital had a positive return on equity of 9.44% and a negative net margin of 69.35%. During the same period last year, the firm posted $0.28 earnings per share.

BrightSpire Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, January 15th. Shareholders of record on Tuesday, December 31st were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 11.18%. The ex-dividend date was Tuesday, December 31st. BrightSpire Capital’s payout ratio is -62.75%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. B. Riley decreased their target price on BrightSpire Capital from $10.00 to $9.00 and set a “buy” rating for the company in a research report on Tuesday, January 7th. Alliance Global Partners began coverage on shares of BrightSpire Capital in a research report on Friday, January 17th. They set a “buy” rating and a $7.25 price objective on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $7.45.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Bank of New York Mellon Corp increased its position in BrightSpire Capital by 0.8% during the 4th quarter. Bank of New York Mellon Corp now owns 357,844 shares of the company’s stock valued at $2,018,000 after purchasing an additional 2,798 shares during the period. Allegiance Financial Group Advisory Services LLC increased its holdings in BrightSpire Capital by 30.3% during the fourth quarter. Allegiance Financial Group Advisory Services LLC now owns 19,087 shares of the company’s stock valued at $108,000 after buying an additional 4,434 shares during the period. Diversify Advisory Services LLC raised its stake in BrightSpire Capital by 27.9% in the third quarter. Diversify Advisory Services LLC now owns 25,131 shares of the company’s stock worth $134,000 after buying an additional 5,482 shares in the last quarter. Atria Investments Inc lifted its holdings in BrightSpire Capital by 18.2% during the fourth quarter. Atria Investments Inc now owns 35,869 shares of the company’s stock worth $202,000 after buying an additional 5,531 shares during the period. Finally, Gallagher Fiduciary Advisors LLC boosted its position in BrightSpire Capital by 18.9% during the 4th quarter. Gallagher Fiduciary Advisors LLC now owns 36,164 shares of the company’s stock valued at $204,000 after acquiring an additional 5,749 shares in the last quarter. Hedge funds and other institutional investors own 56.57% of the company’s stock.

BrightSpire Capital Price Performance

The firm has a market capitalization of $742.42 million, a PE ratio of -5.61 and a beta of 1.88. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.73 and a current ratio of 0.73. The stock has a fifty day moving average price of $5.81 and a 200-day moving average price of $5.81.

About BrightSpire Capital

BrightSpire Capital, Inc operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties.