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BRSPBrightSpire Capital, Inc.Sell5.1·$5.33-0.74%
SellModerate Confidence
Investment thesis

BrightSpire Capital looks reasonably valued on an FFO-proxy basis, but a failed risk/reward gate, negative free cash flow, and three consecutive earnings misses weigh on the near-term investment case.

Thesis pillars

  • Reit Ffo Multiple Value ReadStable
  • Failed Asymmetry Thin UpsideStable
  • Negative Free Cash Flow Quality ConcernStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

BrightSpire Capital, Inc. (BRSP) Stock Analysis

SellVALUE-TRAP 2/5ValueGrowthModerate Confidence

Real Estate · REIT - Mortgage

Sell if holding. At $5.33, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3); Thin upside margin: 6.3%.

BrightSpire Capital is an internally-managed commercial real estate credit REIT that originates and manages a diversified portfolio of senior mortgage loans, selective mezzanine loans and preferred equity, and net leased properties across the United States. The company earns net... Read more

$5.33+6.4% A.UpsideScore 5.1/10#20 of 24 REIT - Mortgage
QualityF-score8 / 9FCF yield-39.76%
IncomeYield11.90%(5y avg 10.56%)Payout2000.00%
Stop $5.10Target $5.66(analyst − 13%)A.R:R 1.2:1
Analyst target$6.50+22.0%8 analysts
$5.66our TP
$5.33price
$6.50mean
$7

Sell if holding. At $5.33, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3); Thin upside margin: 6.3%. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.1/10, moderate confidence.

Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 20d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 28, 202620d to earnings· next earnings call

Thesis

Rewards
Positive insider activity
Risks
Thin upside margin: 6.3%
Consecutive earnings misses (3)
Negative momentum

Key Metrics

P/E (TTM)
P/E (Fwd)7.7
Mkt Cap$700M
EV/EBITDA17.4
Profit Mgn-9.4%
ROE-4.1%
Rev Growth6.9%
Beta1.36
Dividend11.90%
Rating analysts14

Quality Signals

Piotroski F8/9

Options Flow

P/C1.00neutral
IV79%elevated

Material Events(8-K, last 90d)

  • 2026-05-20Item 5.02LOW
    CEO Michael Mazzei's employment agreement was extended via a First Amendment dated May 19, 2026, pushing the term end from March 31, 2027 to March 31, 2030, while reducing his target annual bonus and equity incentive opportunities for 2027-2029.
    SEC filing →
  • 2026-05-13Item 5.02LOW
    At the May 13, 2026 annual meeting, stockholders approved a second amendment to the 2022 Equity Incentive Plan increasing shares available for issuance by 10,000,000 and adding a cash-denominated limit on non-employee director awards.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Obv
1.0
Ma Position
2.2
Rsi
3.5
Macd
6.1
Volume distribution (falling OBV)Below 200-MA but MA still rising (+1.0%/30d) — pullback in uptrend, not confirmed weakness

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
1.1
Dividend Safety
4.3
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 1B/3MYield trap warning: high yield but unsafe
GatesMomentum 2.6<4.5A.R:R 1.2 < 1.5@spotExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 20d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
39 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $5.26Resistance $5.55

Price Targets

$5
$6
A.Upside+6.2%
A.R:R1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! momentum at 2.6 (below the engine's 4.5 threshold)
! asymmetry at 1.2 (below the engine's 1.5 threshold)@spot

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-07-28 (20d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BRSP stock a buy right now?

Sell if holding. At $5.33, A.R:R 1.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3); Thin upside margin: 6.3%. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $5.10. Score 5.1/10, moderate confidence.

What is the BRSP stock price target?

Take-profit target: $5.66 (+6.4% upside). Prior stop was $5.10. Stop-loss: $5.10.

What are the risks of investing in BRSP?

Thin upside margin: 6.3%; Consecutive earnings misses (3); Negative momentum.

Is BRSP overvalued or undervalued?

BrightSpire Capital, Inc. trades at a P/E of N/A (forward 7.7). TrendMatrix value score: 6.1/10. Verdict: Sell.

What do analysts say about BRSP?

14 analysts cover BRSP with a consensus score of 3.9/5. Average price target: $7.

What does BrightSpire Capital, Inc. do?BrightSpire Capital is an internally-managed commercial real estate credit REIT that originates and manages a...

BrightSpire Capital is an internally-managed commercial real estate credit REIT that originates and manages a diversified portfolio of senior mortgage loans, selective mezzanine loans and preferred equity, and net leased properties across the United States. The company earns net interest income and net-lease rental income, funded through secured repurchase facilities, securitizations, and commercial mortgages.

Related stocks: RITM (Rithm Capital Corp.) · EFC (Ellington Financial Inc.) · STWD (STARWOOD PROPERTY TRUST, INC. S) · BXMT (Blackstone Mortgage Trust, Inc.) · FBRT (Franklin BSP Realty Trust, Inc.)
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