Burlington Stores (NYSE:BURL) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Burlington Stores from “hold” to “strong sell” and projected fiscal 2027 earnings of $11.88 per share.
• Despite the downgrade, analyst sentiment remains broadly positive: 15 analysts rate the stock a Buy, five rate it Hold, and one rates it Sell, with a consensus price target of $368.06.
• Burlington reported quarterly EPS of $2.96, beating estimates of $2.19, while revenue rose 11% year over year to $3 billion; shares opened at $233.65, near their one-year low.

Burlington Stores (NYSE:BURL - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday, Zacks reports. Zacks Research also issued estimates for Burlington Stores' FY2027 earnings at $11.88 EPS.

Other equities research analysts also recently issued research reports about the company. Wall Street Zen downgraded Burlington Stores from a "buy" rating to a "hold" rating in a research report on Sunday, August 2nd. UBS Group upped their price objective on Burlington Stores from $435.00 to $440.00 and gave the stock a "buy" rating in a report on Monday, August 17th. Evercore reiterated an "outperform" rating and issued a $400.00 price objective on shares of Burlington Stores in a report on Monday, August 17th. Morgan Stanley reduced their price objective on Burlington Stores from $438.00 to $432.00 and set an "overweight" rating on the stock in a research report on Friday, August 28th. Finally, Wells Fargo & Company set a $370.00 price objective on Burlington Stores in a report on Friday, August 28th. Fifteen investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Burlington Stores currently has an average rating of "Moderate Buy" and a consensus price target of $368.06.

Burlington Stores Price Performance

BURL stock opened at $233.65 on Tuesday. The firm has a 50 day simple moving average of $265.49 and a two-hundred day simple moving average of $308.10. The stock has a market cap of $14.68 billion, a PE ratio of 20.97, a P/E/G ratio of 1.50 and a beta of 1.43. Burlington Stores has a one year low of $226.85 and a one year high of $378.33. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.17 and a quick ratio of 0.47.

Burlington Stores (NYSE:BURL - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.77. Burlington Stores had a net margin of 5.85% and a return on equity of 41.72%. The firm had revenue of $3 billion for the quarter, compared to analysts' expectations of $3.03 billion. During the same quarter last year, the company posted $1.72 EPS. The business's quarterly revenue was up 11.0% on a year-over-year basis. Burlington Stores has set its Q3 2026 guidance at 1.600-1.700 EPS and its FY 2026 guidance at 11.770-11.970 EPS. On average, analysts predict that Burlington Stores will post 11.93 EPS for the current fiscal year.

Insider Buying and Selling

In other Burlington Stores news, CMO Jennifer Vecchio sold 1,678 shares of the stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $271.53, for a total transaction of $455,627.34. Following the completion of the sale, the chief marketing officer owned 74,305 shares of the company's stock, valued at $20,176,036.65. This represents a 2.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Burlington Stores

A number of large investors have recently added to or reduced their stakes in BURL. B. Metzler seel. Sohn & Co. AG bought a new stake in shares of Burlington Stores during the 2nd quarter valued at about $3,210,000. Bull Harbor Capital LLC purchased a new position in shares of Burlington Stores during the first quarter valued at about $1,091,000. Advisors Capital Management LLC bought a new position in Burlington Stores in the second quarter worth about $3,133,000. Sculptor Capital LP bought a new position in Burlington Stores in the second quarter worth about $56,549,000. Finally, Hsbc Holdings PLC raised its stake in Burlington Stores by 41.4% in the second quarter. Hsbc Holdings PLC now owns 60,706 shares of the company's stock worth $19,237,000 after buying an additional 17,787 shares in the last quarter.

About Burlington Stores

Burlington Stores, Inc NYSE: BURL is an off-price retailer offering branded and private-label merchandise at discounted prices. The company sells a broad range of products, including women's, men's and children's apparel; footwear; accessories; home goods; and baby products.

Burlington operates through a nationwide network of stores in the United States. Its off-price model emphasizes opportunistic purchasing, allowing the company to offer changing assortments of merchandise at prices generally below those of department stores and specialty retailers.

The company traces its history to 1972, when it opened its first store in Burlington, New Jersey, as Burlington Coat Factory.

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