Bridge Investment Group (BRDG) AI Stock Analysis

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Bridge Investment Group

(NYSE:BRDG)

Rating:57Neutral

Price Target:

$9.50

▼(-0.73%Downside)

The overall stock score for Bridge Investment Group is primarily influenced by its stable cash flow generation and moderate technical indicators. However, significant challenges like negative profitability, high leverage, and legal issues related to its merger weigh heavily on its valuation and overall outlook.

Positive Factors

Negative Factors

Fundraising Performance

Fundraising of $289m in the 3Q was 64% below expectations, and unchanged from a year ago.

Interest Rates

The recent move higher in 10-year yields risks further delaying the recovery.

Real Estate Market

The cyclical recovery in real estate is taking longer than expected to materialize, which pressures BRDG’s fundraising, fee-related earnings, performance fees, and earnings.

Bridge Investment Group (BRDG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.55B

Dividend Yield4.6%

Average Volume (3M)299.67K

Price to Earnings (P/E)72.2

Beta (1Y)1.68

Revenue Growth-1.09%

EPS Growth-120.06%

CountryUS

Employees2,250

SectorFinancial

Sector Strength79

IndustryAsset Management

Share Statistics

EPS (TTM)0.09

Shares Outstanding44,634,470

10 Day Avg. Volume319,462

30 Day Avg. Volume299,666

Financial Highlights & Ratios

PEG Ratio-0.04

Price to Book (P/B)3.65

Price to Sales (P/S)0.00

P/FCF Ratio1.28

Enterprise Value/Market Cap0.16

Enterprise Value/Revenue0.24

Enterprise Value/Gross Profit2.38

Enterprise Value/Ebitda2.26

Forecast

1Y Price Target

$9.00

Price Target Upside-5.96% Downside

Rating ConsensusHold

Number of Analyst Covering2

Bridge Investment Group Business Overview & Revenue Model

Company DescriptionBridge Investment Group (BRDG) is a real estate investment management firm that focuses on providing institutional and retail investors with investment opportunities across various real estate sectors. The company specializes in managing real estate funds and offering asset management services. Bridge Investment Group capitalizes on its extensive industry experience and network to acquire, manage, and develop properties that deliver attractive returns to its investors.

How the Company Makes MoneyBridge Investment Group makes money primarily through management fees and performance-based incentives. The company earns management fees by overseeing the assets within its investment funds, collecting a percentage of the assets under management as compensation for its services. Additionally, Bridge Investment Group may gain performance-based fees, also known as carried interest, which are a share of the profits generated by the investment funds that exceed a predefined benchmark. These revenue streams are supported by the company's strategic acquisitions, property development, and asset management expertise, enabling them to maximize value and returns for their investors. Partnerships with institutional investors and capital providers play a critical role in sourcing investment opportunities and scaling the company's operations.

Bridge Investment Group Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q3-2024)

% Change Since: 1.70%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call reflects an optimistic outlook with significant improvements and investments in key sectors such as logistics and debt strategies. Despite a decline in net income and challenges in transaction volumes, the company is well-positioned for future growth with substantial capital raised and positive market trends.

Q3-2024 Updates

Positive Updates

Improvement in Real Estate Market

Robert Morse indicated that the long downturn in real estate has bottomed out, with activity picking up across asset classes. The sector is beginning to reemerge with more substantive dialogue with investors and more deals to evaluate.

Strong Performance in Logistics and Debt Strategies

In Q3, $349 million was deployed in multifamily and workforce assets, $40 million in logistics, and $966 million in debt strategies. The logistics vertical is seeing opportunities to stabilize assets at a 7% yield, and debt strategies had its largest lending quarter in over two years.

Significant Capital Raised

Approximately $607 million was raised in Q3, led by $429 million in debt strategies and $115 million in workforce and affordable housing. There was also $48 million in solar infrastructure.

Investments in New Capabilities and Markets

Bridge has expanded into logistics, PE secondaries, and renewable energy, with promising developments such as a new logistics team that raised $336 million in closed-end vehicles.

Positive Real Estate Valuation Trends

Green Street's commercial property price index is up 3% in 2024, and Bridge's portfolios were also positive for the quarter. The multifamily segment saw a weighted average IRR of 23.6% on dispositions.

Negative Updates

Decline in Net Income

GAAP net income was $10.6 million for Q3, with diluted net income per share of $0.04, reflecting a challenging environment.

Higher Compensation Expenses

Fee-related earnings decreased due to higher compensation-related expenses, which increased by approximately $3.1 million.

Insurance Losses

There was a net insurance loss of $1.6 million in Q3, compared to a gain of $2 million last quarter, impacting distributable earnings.

Muted Real Estate Transaction Volumes

Although there is momentum, overall real estate transaction volumes remain below normal levels, impacting revenue.

Company Guidance

During Bridge Investment Group's Q3 2024 earnings call, the leadership provided detailed guidance and discussed a variety of financial metrics. The company reported a GAAP net income of approximately $10.6 million, with net income attributable to Bridge per share of Class A common stock at $0.04. Distributable earnings of the operating company stood at $28.2 million or $0.15 per share after tax. The Board declared a dividend of $0.10 per share, payable on December 20 to shareholders of record as of December 6. In terms of capital deployment, $349 million was allocated to multifamily and workforce assets, $40 million to logistics assets, and $966 million in debt strategies. Fee-related revenue was $82.5 million, a 3% increase from the previous quarter, while fee-related earnings for the operating company were $32.4 million. The company anticipates continued growth, particularly in logistics and debt strategies, with a focus on institutional investors, which accounted for a significant portion of inflows in Q3. Looking ahead, Bridge expects robust capital deployment opportunities and a recovery in the real estate market, positioning it for further expansion in sectors with secular tailwinds.

Bridge Investment Group Financial Statement Overview

Summary

Bridge Investment Group has a stable financial base with efficient cash flow management, reflected in a strong cash flow score of 75. However, challenges such as a negative net profit margin, high debt-to-equity ratio, and minimal revenue growth impact the overall financial health. The company needs to improve profitability and manage leverage better.

Income Statement

Neutral

The income statement shows modest growth and mixed profitability. The TTM data reveals a gross profit margin of 41.8%, which is healthy for the asset management industry. However, the net profit margin is negative at -3.66%, indicating a recent downturn in profitability. Revenue growth from the previous year was minimal at 0.14%, reflecting stagnant revenue performance. The EBIT margin is 15.65%, while the EBITDA margin stands at 13.13%, indicating operational efficiency but declining from prior periods.

Balance Sheet

Neutral

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is high at 6.34, suggesting significant leverage relative to equity. The return on equity (ROE) is negative at -20.63%, driven by the net loss in the TTM period. The equity ratio is low at 6.19%, indicating limited equity coverage of total assets. Overall, the company is moderately leveraged, which could pose risks if profitability does not improve.

Cash Flow

Positive

The cash flow statement reflects strong free cash flow generation, with a free cash flow of $111.2 million. The operating cash flow to net income ratio is robust due to positive operating cash flows despite a net loss. The company has a healthy liquidity position and effective cash management, which is a positive indicator for future operations and financial flexibility.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
413.00M	412.43M	390.65M	409.05M	330.01M	231.95M
	Gross Profit
172.71M	161.11M	172.57M	183.15M	149.41M	117.75M
	EBIT
64.64M	99.46M	-53.91M	116.07M	81.81M	67.28M
	EBITDA
54.23M	46.70M	-37.55M	119.00M	84.64M	70.50M
	Net Income Common Stockholders
-15.10M	8.01M	-11.90M	272.37M	408.63M	146.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.53M	111.72M	77.54M	198.19M	86.45M	106.88M
	Total Assets
1.18B	1.25B	1.29B	1.15B	846.29M	426.01M
	Total Debt
464.46M	447.32M	483.95M	305.93M	160.15M	164.17M
	Net Debt
399.33M	356.73M	426.25M	122.35M	81.73M	62.34M
	Total Liabilities
728.13M	741.48M	743.47M	508.52M	296.56M	224.54M
	Stockholders Equity
73.19M	83.42M	74.91M	79.10M	71.79M	186.09M
Cash Flow		Free Cash Flow
111.25M	145.21M	172.41M	225.13M	208.10M	129.83M
	Operating Cash Flow
111.17M	145.21M	174.81M	228.35M	209.22M	130.10M
	Investing Cash Flow
-10.99M	10.67M	-343.21M	-21.88M	-114.26M	-47.81M
	Financing Cash Flow
-96.22M	-120.71M	42.39M	-97.08M	-118.45M	-35.04M

Bridge Investment Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.57

Price Trends

50DMA

9.25

Positive

100DMA

9.05

Positive

200DMA

9.10

Positive

Market Momentum

MACD

0.01

Negative

RSI

58.44

Neutral

STOCH

89.61

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRDG, the sentiment is Positive. The current price of 9.57 is above the 20-day moving average (MA) of 9.50, above the 50-day MA of 9.25, and above the 200-day MA of 9.10, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 89.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRDG.

Bridge Investment Group Risk Analysis

Bridge Investment Group disclosed 60 risk factors in its most recent earnings report. Bridge Investment Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bridge Investment Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	81 Outperform	$4.18B	13.84	26.57%	3.15%	6.53%	36.51%
FHI	80 Outperform	$3.36B	11.96	24.98%	3.20%	2.32%	1.08%
AB	76 Outperform	$4.47B	10.90	20.69%	7.92%	―	53.17%
APAM	76 Outperform	$3.38B	11.81	69.81%	6.49%	7.18%	10.17%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
GCMG	62 Neutral	$2.42B	91.54	-12.68%	3.48%	17.33%	1.83%
BRDG	57 Neutral	$2.55B	72.24	-22.41%	4.60%	-1.09%	-120.06%

* Financial Sector Average

Performance Comparison

BRDG

Bridge Investment Group

9.71

2.56

35.80%

AllianceBernstein

40.42

10.32

34.29%

FHI

Federated Hermes

42.36

10.96

34.90%

APAM

Artisan Partners

42.62

4.79

12.66%

VCTR

Victory Capital Holdings

63.30

14.88

30.73%

GCMG

GCM Grosvenor

12.25

2.80

29.63%

Bridge Investment Group Corporate Events

M&A TransactionsLegal Proceedings

Bridge Investment Group Faces Legal Challenges Over Merger

Negative

Jun 11, 2025

On February 23, 2025, Bridge Investment Group Holdings Inc. entered into a merger agreement with Apollo Global Management, which will result in Bridge becoming a wholly-owned subsidiary of Apollo. This merger has led to legal challenges from Bridge stockholders who allege deficiencies in the merger-related disclosures. Bridge has decided to supplement these disclosures to avoid litigation delays, although it denies any wrongdoing.

The most recent analyst rating on (BRDG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Bridge Investment Group stock, see the BRDG Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.