Burford Capital Limited (NYSE:BUR) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• The five covering analysts give Burford an average recommendation of Hold (two sell, three buy) with an average 12‑month price target of $12, though recent notes range from downgrades to a Bank of America initiation at Buy.
• Burford materially missed quarterly expectations, reporting EPS of -$0.17 vs. $0.37 expected and revenue of $48.78M versus $168.3M consensus, while analysts forecast FY earnings of about $1.28 per share.
• Shares opened at $4.53 (52‑week range $3.59–$15.10) with a market cap around $992M, and the firm announced a $0.0625 dividend payable June 12 (record May 22), a payout the report cites as implying an unusually high yield.

Burford Capital Limited (NYSE:BUR - Get Free Report) has earned an average recommendation of "Hold" from the five analysts that are covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation and three have issued a buy recommendation on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $12.00.

BUR has been the topic of several research reports. Wall Street Zen lowered shares of Burford Capital from a "hold" rating to a "sell" rating in a report on Sunday, December 21st. Wedbush reiterated a "neutral" rating and set a $4.75 price objective (down from $6.00) on shares of Burford Capital in a report on Monday, March 30th. Zacks Research lowered shares of Burford Capital from a "hold" rating to a "strong sell" rating in a report on Monday, March 2nd. Weiss Ratings restated a "sell (d+)" rating on shares of Burford Capital in a report on Friday, March 27th. Finally, Bank of America initiated coverage on shares of Burford Capital in a report on Wednesday, February 18th. They issued a "buy" rating on the stock.

Institutional Investors Weigh In On Burford Capital

Institutional investors and hedge funds have recently made changes to their positions in the business. Signaturefd LLC raised its holdings in shares of Burford Capital by 1,687.7% in the 4th quarter. Signaturefd LLC now owns 2,914 shares of the company's stock worth $26,000 after acquiring an additional 2,751 shares during the last quarter. Quadrant Capital Group LLC acquired a new stake in shares of Burford Capital in the 4th quarter worth about $53,000. Strs Ohio acquired a new stake in shares of Burford Capital in the 1st quarter worth about $55,000. Insigneo Advisory Services LLC acquired a new stake in shares of Burford Capital in the 4th quarter worth about $93,000. Finally, Equitable Holdings Inc. acquired a new stake in shares of Burford Capital in the 4th quarter worth about $94,000.

Burford Capital Price Performance

Shares of NYSE BUR opened at $4.53 on Thursday. The firm's 50-day moving average price is $7.95 and its 200-day moving average price is $9.22. Burford Capital has a 1-year low of $3.59 and a 1-year high of $15.10. The firm has a market capitalization of $992.05 million, a P/E ratio of 16.79 and a beta of 1.29. The company has a current ratio of 10.93, a quick ratio of 10.93 and a debt-to-equity ratio of 0.68.

Burford Capital (NYSE:BUR - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.54). Burford Capital had a net margin of 15.14% and a return on equity of 1.97%. The company had revenue of $48.78 million for the quarter, compared to analyst estimates of $168.30 million. Equities research analysts anticipate that Burford Capital will post 1.28 earnings per share for the current fiscal year.

Burford Capital Dividend Announcement

The firm also recently announced a dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be issued a $0.0625 dividend. This represents a dividend yield of 147.0%. The ex-dividend date is Friday, May 22nd. Burford Capital's dividend payout ratio is currently 44.44%.

About Burford Capital

Burford Capital NYSE: BUR is a leading global finance firm that specializes in litigation and arbitration funding, risk management, and asset recovery. The company provides capital to law firms and corporate clients to finance legal fees and associated costs in commercial disputes. In exchange for funding, Burford shares in any awards or settlements, enabling clients to pursue meritorious claims without bearing upfront legal expenses.

Founded in 2009 by Christopher Bogart, Burford was among the first firms to establish a dedicated litigation finance business.

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