Burford Capital (NYSE:BUR) Trading Down 5.6% - What's Next?

Key Points

• Burford Capital shares fell 5.6% to about $3.95 in mid-day trading, with volume significantly below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an average price target of $9.33, while recent reports included downgrades to “strong sell” and “sell.”
• The company missed quarterly earnings expectations, reporting $0.01 in EPS versus the $0.08 consensus estimate. Despite the weak result, several institutional investors increased their holdings during recent quarters.

Burford Capital Limited (NYSE:BUR - Get Free Report) shares dropped 5.6% during mid-day trading on Wednesday . The company traded as low as $3.98 and last traded at $3.9450. Approximately 720,318 shares changed hands during trading, a decline of 73% from the average daily volume of 2,629,801 shares. The stock had previously closed at $4.18.

Analysts Set New Price Targets

Several equities analysts recently issued reports on BUR shares. Zacks Research lowered Burford Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, August 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Burford Capital in a report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of 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 assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $9.33.

Burford Capital Trading Down 6.8%

The company has a debt-to-equity ratio of 1.64, a quick ratio of 9.56 and a current ratio of 9.56. The firm has a market cap of $855.26 million, a P/E ratio of -0.51, a price-to-earnings-growth ratio of 0.08 and a beta of 1.25. The business's fifty day moving average is $4.26 and its 200-day moving average is $4.96.

Burford Capital (NYSE:BUR - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate 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 period last year, the firm posted $0.39 earnings per share. Analysts predict that Burford Capital Limited will post 1.55 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Cooke & Bieler LP boosted its holdings in Burford Capital by 31.0% during the 4th quarter. Cooke & Bieler LP now owns 5,194,551 shares of the company's stock worth $46,335,000 after acquiring an additional 1,228,328 shares during the last quarter. Langdon Equity Partners bought a new stake in Burford Capital during the fourth quarter worth about $19,661,000. Greenhaven Road Investment Management L.P. increased its stake in shares of Burford Capital by 16.4% during the fourth quarter. Greenhaven Road Investment Management L.P. now owns 1,865,312 shares of the company's stock valued at $16,639,000 after purchasing an additional 262,500 shares in the last quarter. 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. Finally, Renaissance Technologies LLC boosted its holdings in Burford Capital by 15.2% in the first quarter. Renaissance Technologies LLC now owns 958,500 shares of the company's stock worth $4,332,000 after acquiring an additional 126,500 shares in the last quarter.

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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