Burford Capital (NYSE:BUR) Stock Price Down 8.9% - Time to Sell?

Key Points

• Burford Capital shares fell 8.9% in Thursday’s midday trading, dropping from a prior close of $3.65 to about $3.33; trading volume was 58% below average.
• Analyst sentiment is mixed but averages to Hold: two analysts rate the stock Buy, three Hold, and one Sell. The consensus price target is $4.12, while Wedbush set a $3.25 target with a Neutral rating.
• The company reported quarterly EPS of $0.10, beating the $0.09 estimate, and revenue of $267.38 million versus analysts’ $109.13 million forecast.

Burford Capital Limited (NYSE:BUR - Get Free Report) shares dropped 8.9% during mid-day trading on Thursday. The stock traded as low as $3.31 and last traded at $3.3250. Approximately 1,085,729 shares traded hands during trading, a decline of 58% from the average session volume of 2,600,617 shares. The stock had previously closed at $3.65.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on BUR. Wedbush set a $3.25 target price on shares of Burford Capital and gave the stock a "neutral" rating in a research note on Thursday. Zacks Research upgraded shares of Burford Capital from a "strong sell" rating to a "hold" rating in a research report on Friday, October 9th. Wall Street Zen raised shares of Burford Capital from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings downgraded shares of Burford Capital from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, November 4th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $4.12.

Burford Capital Stock Down 8.6%

The firm has a market capitalization of $732.35 million, a price-to-earnings ratio of -0.44 and a beta of 1.29. The business has a 50 day simple moving average of $3.73 and a 200-day simple moving average of $5.19. The company has a debt-to-equity ratio of 1.53, a quick ratio of 11.94 and a current ratio of 11.94.

Burford Capital (NYSE:BUR - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.09 by $0.01. The company had revenue of $267.38 million for the quarter, compared to analysts' expectations of $109.13 million. During the same quarter in the prior year, the firm earned ($0.09) EPS. On average, equities analysts expect that Burford Capital Limited will post 1.46 EPS for the current year.

Hedge Funds Weigh In On Burford Capital

A number of institutional investors have recently bought and sold shares of BUR. London Co. of Virginia boosted its holdings in Burford Capital by 2.7% in the 1st quarter. London Co. of Virginia now owns 108,582 shares of the company's stock valued at $491,000 after purchasing an additional 2,874 shares during the last quarter. Parcion Private Wealth LLC increased its holdings in shares of Burford Capital by 31.1% during the 3rd quarter. Parcion Private Wealth LLC now owns 13,876 shares of the company's stock worth $54,000 after buying an additional 3,292 shares during the last quarter. Commonwealth Equity Services LLC increased its holdings in shares of Burford Capital by 24.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 17,043 shares of the company's stock worth $67,000 after buying an additional 3,302 shares during the last quarter. Farther Finance Advisors LLC raised its position in shares of Burford Capital by 7.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 57,722 shares of the company's stock valued at $226,000 after buying an additional 3,950 shares during the period. Finally, Pilgrim Partners Asia Pte Ltd raised its position in shares of Burford Capital by 2.0% during the 3rd quarter. Pilgrim Partners Asia Pte Ltd now owns 255,000 shares of the company's stock valued at $1,000,000 after buying an additional 5,000 shares during the period.

About Burford Capital

Burford Capital is a global legal finance company that provides funding and related services to businesses and law firms involved in commercial legal claims. Its offerings include financing for litigation and arbitration costs, portfolio financing for groups of legal matters, and capital solutions that let clients access the potential value of legal claims before they are resolved. The company also provides services related to legal risk management and asset recovery, and manages investment vehicles focused on legal finance.

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