BrightSpire Capital, Inc. (NYSE: BRSP) has reported a significant increase in short interest, rising by 30.5% during December 2023. As of December 31, the total short interest reached 5,482,993 shares, up from 4,201,543 shares noted on December 15. This figure represents approximately 4.3% of the company’s total shares. With an average trading volume of 850,888 shares, the days-to-cover ratio stands at 6.4 days.
Analysts’ Ratings and Insights
Several brokerages have recently assessed BrightSpire Capital, contributing to a nuanced outlook on the stock. B. Riley initiated coverage on January 5, 2024, providing a “buy” rating and setting a target price of $7.50. Conversely, Weiss Ratings reaffirmed a “sell (d+)” rating on December 29, 2023. In its assessment, Citigroup maintained a “market outperform” rating on October 30, 2023.
Currently, five analysts have rated the stock as a buy, while two have issued sell ratings. According to MarketBeat.com, the consensus rating for BrightSpire Capital is “hold,” with an average target price of $6.40.
Quarterly Earnings and Dividend Announcement
BrightSpire Capital released its quarterly earnings report on October 28, 2023. The company reported earnings per share (EPS) of $0.16, aligning with analysts’ expectations. Despite a positive return on equity of 7.51%, the company faced challenges, reflected in a negative net margin of 26.91%. The reported revenue was $35.05 million, significantly below the anticipated $84.43 million.
In addition to financial performance, the company declared a quarterly dividend of $0.16, paid on January 15, 2024. Shareholders on record as of December 31, 2023, received this dividend, which translates to an annualized amount of $0.64 and a dividend yield of 10.7%. The dividend payout ratio currently stands at -213.33%.
Institutional Trading Activity
Recent trading activity indicates a shift among institutional investors regarding BrightSpire Capital. SG Americas Securities LLC increased its stake in the company by 240.3% in the fourth quarter, now holding 73,161 shares valued at $410,000 after acquiring an additional 51,663 shares.
JPMorgan Chase & Co. also expanded its position by 3.1%, owning 1,821,391 shares worth $9,890,000 after purchasing 54,652 shares. CIBC Private Wealth Group LLC made a substantial increase of 812.1%, bringing its holdings to 10,945 shares valued at $59,000. Other notable institutional activities include CIBC Bancorp USA Inc. acquiring a new stake worth approximately $75,000 and Alpine Global Management LLC growing its holdings by 3.5%.
Overall, institutional investors and hedge funds collectively own 56.57% of BrightSpire Capital’s stock.
BrightSpire Capital, a real estate investment trust (REIT), focuses on commercial real estate debt, primarily engaging in the origination, acquisition, and management of a diverse portfolio of mortgage loans, mezzanine loans, and preferred equity investments. The company aims to deliver attractive risk-adjusted returns through regular dividend distributions, emphasizing stable cash flows and downside protection in its investment strategy.
