Burford Capital (NYSE:BUR) Reaches New 12-Month Low - Time to Sell?

Key Points

• Burford Capital shares fell to a new 52-week low of $3.26, well below their 50-day and 200-day moving averages, with a market capitalization of approximately $721 million.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a $9.33 consensus price target, while recent rating changes moved from “strong sell” to “hold” or “sell.”
• The company reported quarterly EPS of $0.01, missing the $0.08 consensus estimate and declining from $0.39 a year earlier, although several institutional investors recently increased or initiated positions.

Shares of Burford Capital Limited (NYSE:BUR - Get Free Report) reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $3.26 and last traded at $3.2850, with a volume of 2,625,429 shares. The stock had previously closed at $3.44.

Analyst Ratings Changes

Several brokerages have commented on BUR. Zacks Research upgraded shares of Burford Capital from a "strong sell" rating to a "hold" rating in a report on Friday, October 9th. Wall Street Zen upgraded Burford Capital from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Burford Capital in a report on Friday, August 7th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $9.33.

Burford Capital Stock Performance

The company has a quick ratio of 9.56, a current ratio of 9.56 and a debt-to-equity ratio of 1.64. The firm has a market cap of $721.32 million, a P/E ratio of -0.43, a P/E/G ratio of 0.06 and a beta of 1.25. The business has a fifty day simple moving average of $4.07 and a 200-day simple moving average of $4.30.

Burford Capital (NYSE:BUR - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.01 EPS for the quarter, missing analysts' consensus estimates of $0.08 by ($0.07). During the same quarter in the previous year, the company posted $0.39 EPS. On average, sell-side analysts predict that Burford Capital Limited will post 1.55 EPS for the current fiscal year.

Institutional Investors Weigh In On Burford Capital

Several hedge funds have recently bought and sold shares of the business. Solas Capital Management LLC grew its stake in shares of Burford Capital by 23.4% in the 2nd quarter. Solas Capital Management LLC now owns 1,210,944 shares of the company's stock worth $4,965,000 after buying an additional 230,000 shares during the last quarter. Hsbc Holdings PLC purchased a new position in Burford Capital during the first quarter valued at $1,626,000. KBC Group NV raised its stake in Burford Capital by 8,916.0% during the first quarter. KBC Group NV now owns 640,497 shares of the company's stock valued at $2,895,000 after buying an additional 633,393 shares during the last quarter. Odyssean LLC purchased a new position in Burford Capital during the second quarter valued at $2,512,000. Finally, Y Intercept Hong Kong Ltd raised its stake in Burford Capital by 181.8% during the first quarter. Y Intercept Hong Kong Ltd now owns 217,931 shares of the company's stock valued at $985,000 after buying an additional 140,595 shares during the last quarter.

About Burford Capital

Burford Capital is a global legal finance and asset management firm that provides capital to support commercial litigation, arbitration and other legal claims. Its financing can help companies and law firms cover legal expenses, monetize expected recoveries or manage the financial risk associated with lengthy disputes.

The company also provides services related to litigation risk management, legal asset monetization and post-settlement or judgment recovery. Burford generally evaluates the underlying legal claims and potential recoveries when structuring investments, and its capital may be provided on an individual-case or portfolio basis.

Founded in 2009, Burford serves clients and legal counterparties involved in disputes across major international jurisdictions.

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