Burlington Stores (NYSE:BURL) Shares Down 3.6% - Here's Why

Key Points

• Burlington Stores shares fell 3.6% to about $318.67 amid lighter-than-average trading volume, bringing the stock below its 50-day moving average of $341.91.
• Analysts remain broadly positive, with 13 Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $371.50, despite recent target reductions from Wells Fargo and JPMorgan.
• The company beat quarterly expectations, reporting $2.01 in EPS and $2.86 billion in revenue, up 14.1% year over year; however, insiders sold more than $10.2 million of stock during the last quarter.

Burlington Stores, Inc. (NYSE:BURL - Get Free Report) shares dropped 3.6% during trading on Tuesday . The company traded as low as $318.73 and last traded at $318.67. Approximately 504,654 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 791,606 shares. The stock had previously closed at $330.64.

Analysts Set New Price Targets

Several brokerages recently weighed in on BURL. Wells Fargo & Company reduced their price target on Burlington Stores from $400.00 to $375.00 and set an "overweight" rating on the stock in a research note on Friday, May 29th. JPMorgan Chase & Co. lowered their price objective on Burlington Stores from $374.00 to $351.00 and set an "overweight" rating for the company in a research report on Friday, May 29th. Truist Financial boosted their target price on shares of Burlington Stores from $305.00 to $310.00 and gave the company a "hold" rating in a report on Thursday, May 28th. UBS Group upped their target price on shares of Burlington Stores from $435.00 to $440.00 and gave the stock a "buy" rating in a research report on Monday, August 17th. Finally, Wall Street Zen lowered shares of Burlington Stores from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Thirteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $371.50.

Burlington Stores Price Performance

The company has a current ratio of 1.16, a quick ratio of 0.49 and a debt-to-equity ratio of 1.03. The company has a market cap of $19.88 billion, a PE ratio of 32.56, a P/E/G ratio of 1.68 and a beta of 1.44. The firm has a 50 day moving average of $341.91 and a two-hundred day moving average of $325.17.

Burlington Stores (NYSE:BURL - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $2.01 earnings per share for the quarter, beating analysts' consensus estimates of $1.80 by $0.21. Burlington Stores had a return on equity of 39.93% and a net margin of 5.24%.The company had revenue of $2.86 billion during the quarter, compared to analyst estimates of $2.80 billion. During the same quarter last year, the company earned $1.60 EPS. The firm's revenue for the quarter was up 14.1% on a year-over-year basis. Burlington Stores has set its Q2 2026 guidance at 2.050-2.200 EPS and its FY 2026 guidance at 11.450-11.800 EPS. Research analysts predict that Burlington Stores, Inc. will post 12.21 earnings per share for the current fiscal year.

Insider Transactions at Burlington Stores

In related news, insider Matthew Pasch sold 3,773 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $317.21, for a total transaction of $1,196,833.33. Following the sale, the insider directly owned 6,523 shares of the company's stock, valued at approximately $2,069,160.83. This represents a 36.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Stephen Ferroni sold 2,343 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $337.22, for a total transaction of $790,106.46. Following the sale, the chief accounting officer owned 1,391 shares of the company's stock, valued at approximately $469,073.02. This represents a 62.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 30,392 shares of company stock valued at $10,280,271 in the last quarter. 1.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BURL. JPL Wealth Management LLC purchased a new position in Burlington Stores in the 3rd quarter worth approximately $28,000. Harbour Investments Inc. lifted its position in Burlington Stores by 44.7% in the 4th quarter. Harbour Investments Inc. now owns 110 shares of the company's stock valued at $32,000 after acquiring an additional 34 shares in the last quarter. Reflection Asset Management purchased a new stake in Burlington Stores during the 4th quarter valued at $34,000. Larson Financial Group LLC boosted its stake in Burlington Stores by 180.0% during the 4th quarter. Larson Financial Group LLC now owns 126 shares of the company's stock valued at $36,000 after purchasing an additional 81 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its holdings in shares of Burlington Stores by 235.4% in the 2nd quarter. Geneos Wealth Management Inc. now owns 161 shares of the company's stock worth $37,000 after purchasing an additional 113 shares in the last quarter.

Burlington Stores Company Profile

Burlington Stores, Inc is an American off-price retailer that sells apparel and home goods at discounted prices. The company's merchandise assortment includes clothing for women, men and children, plus baby products, footwear, accessories, beauty items, toys and home décor. Burlington's merchandising strategy focuses on offering branded and private-label goods at lower prices than traditional department stores by sourcing excess inventory, closeouts and opportunistic buys from manufacturers and other retailers.

The business traces its roots to the Burlington Coat Factory name established in the early 1970s and has since evolved into a broader off-price retailer that carries a wide range of seasonal and everyday merchandise.

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