Burlington Stores (NYSE:BURL) Shares Down 5.2% After Analyst Downgrade

Key Points

• Burlington Stores shares fell 5.2% to about $258.68 after Citigroup cut its price target from $380 to $318 while maintaining a neutral rating.
• Analyst sentiment remains broadly positive despite mixed revisions: the stock has a consensus “Moderate Buy” rating and an average price target of $367.56, with 13 Buy ratings and six Holds.
• Burlington reported quarterly EPS of $2.96, beating estimates of $2.19, while revenue rose 11% year over year to $3 billion but narrowly missed expectations; insiders sold roughly $10.3 million of stock over the past 90 days.

Burlington Stores, Inc. (NYSE:BURL - Get Free Report) dropped 5.2% during trading on Monday after Citigroup lowered their price target on the stock from $380.00 to $318.00. Citigroup currently has a neutral rating on the stock. Burlington Stores traded as low as $259.28 and last traded at $258.6790. 332,513 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 838,421 shares. The stock had previously closed at $272.95.

Other research analysts also recently issued reports about the stock. Jefferies Financial Group upped their target price on shares of Burlington Stores from $365.00 to $410.00 and gave the company a "buy" rating in a research note on Friday, August 14th. Morgan Stanley cut their price objective on shares of Burlington Stores from $438.00 to $432.00 and set an "overweight" rating on the stock in a report on Friday. Wall Street Zen cut shares of Burlington Stores from a "buy" rating to a "hold" rating in a research report on Sunday, August 2nd. UBS Group raised their target price on Burlington Stores from $435.00 to $440.00 and gave the company a "buy" rating in a research note on Monday, August 17th. Finally, Sanford C. Bernstein cut their price target on Burlington Stores from $365.00 to $355.00 and set an "outperform" rating on the stock in a research note on Friday. Thirteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $367.56.

Insider Buying and Selling at Burlington Stores

In other news, insider Matthew Pasch sold 3,773 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $317.21, for a total value of $1,196,833.33. Following the sale, the insider owned 6,523 shares in the company, 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, CMO Jennifer Vecchio sold 20,920 shares of Burlington Stores stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $341.53, for a total value of $7,144,807.60. Following the completion of the transaction, the chief marketing officer owned 81,017 shares of the company's stock, valued at $27,669,736.01. This trade represents a 20.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 30,392 shares of company stock worth $10,280,271 in the last ninety days. 1.30% of the stock is owned by insiders.

Institutional Trading of Burlington Stores

Several institutional investors have recently added to or reduced their stakes in the business. JPL Wealth Management LLC acquired a new stake in shares of Burlington Stores during the 3rd quarter worth approximately $28,000. Harbour Investments Inc. increased its stake in shares of Burlington Stores by 44.7% in the fourth quarter. Harbour Investments Inc. now owns 110 shares of the company's stock valued at $32,000 after purchasing an additional 34 shares during the period. Reflection Asset Management bought a new stake in shares of Burlington Stores during the fourth quarter valued at approximately $34,000. Larson Financial Group LLC boosted its position in shares of Burlington Stores by 180.0% during the fourth quarter. Larson Financial Group LLC now owns 126 shares of the company's stock worth $36,000 after buying an additional 81 shares during the period. Finally, Geneos Wealth Management Inc. grew its holdings in 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 buying an additional 113 shares in the last quarter.

Burlington Stores Trading Down 5.2%

The firm has a 50-day moving average of $339.01 and a 200 day moving average of $324.89. The company has a current ratio of 1.17, a quick ratio of 0.47 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $16.25 billion, a price-to-earnings ratio of 23.24, a PEG ratio of 1.29 and a beta of 1.44.

Burlington Stores (NYSE:BURL - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $2.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.19 by $0.77. The company had revenue of $3 billion during the quarter, compared to analysts' expectations of $3.03 billion. Burlington Stores had a return on equity of 41.72% and a net margin of 5.85%.The company's revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.72 earnings per share. Burlington Stores has set its Q3 2026 guidance at 1.600-1.700 EPS and its FY 2026 guidance at 11.770-11.970 EPS. As a group, equities analysts predict that Burlington Stores, Inc. will post 13.28 EPS for the current fiscal year.

About Burlington Stores

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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