Burford Capital (NYSE:BUR) Shares Gap Up - Still a Buy?

Key Points

• Burford Capital shares opened higher, rising from a previous close of $3.64 to $3.89 and last trading near $3.91, up roughly 10.9%.
• Analyst sentiment remains mixed but leans cautious: the consensus rating is “Hold”, with a $9.33 price target, while recent ratings included “Sell” and “Strong Sell” downgrades.
• The company reported quarterly EPS of $0.01, missing the $0.08 consensus estimate and declining from $0.39 a year earlier; analysts expect full-year EPS of $1.55.

Shares of Burford Capital Limited (NYSE:BUR - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $3.64, but opened at $3.89. Burford Capital shares last traded at $3.9050, with a volume of 361,389 shares changing hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on BUR. Weiss Ratings reiterated a "sell (d-)" rating on shares of Burford Capital in a research note on Friday, August 7th. Zacks Research lowered Burford Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Finally, Wall Street Zen raised Burford Capital from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $9.33.

Burford Capital Stock Up 10.9%

The stock has a market capitalization of $886.01 million, a P/E ratio of -0.52, a P/E/G ratio of 0.06 and a beta of 1.25. The company's 50-day moving average price is $4.22 and its 200 day moving average price is $4.70. The company has a debt-to-equity ratio of 1.64, a quick ratio of 9.56 and a current ratio of 9.56.

Burford Capital (NYSE:BUR - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.07). Burford Capital had a net margin of 15.14% and a return on equity of 10.24%. During the same quarter in the previous year, the firm posted $0.39 EPS. As a group, equities analysts expect that Burford Capital Limited will post 1.55 earnings per share for the current year.

Hedge Funds Weigh In On Burford Capital

A number of hedge funds have recently made changes to their positions in BUR. XP Advisory US Inc. bought a new position in Burford Capital in the 2nd quarter worth approximately $31,000. Sequoia Financial Advisors LLC bought a new stake in shares of Burford Capital during the second quarter valued at approximately $44,000. Waverly Advisors LLC bought a new stake in shares of Burford Capital during the second quarter valued at approximately $46,000. Allworth Financial LP lifted its holdings in shares of Burford Capital by 1,747.4% in the second quarter. Allworth Financial LP now owns 11,306 shares of the company's stock worth $46,000 after buying an additional 10,694 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in shares of Burford Capital during the second quarter worth $65,000.

About Burford Capital

Burford Capital Limited NYSE: BUR is a global finance and asset management firm focused on the legal sector. The company provides capital to corporations, law firms and other organizations involved in commercial litigation, arbitration and other legal claims, allowing clients to fund legal expenses or monetize the potential value of legal assets without relying solely on their own balance sheets.

Burford's services include financing individual legal matters, portfolios of claims and law firm receivables, as well as providing capital for post-settlement recoveries, insolvency proceedings and complex legal-risk transactions.

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