Wedbush Issues Negative Outlook for Burford Capital Earnings

Key Points

• Wedbush has downgraded its Q3 2025 earnings per share (EPS) estimate for Burford Capital from $0.45 to $0.17, maintaining an "Outperform" rating with a $18.00 price target.
• Burford Capital recently reported an EPS of $0.39 for Q2, exceeding analysts' expectations of $0.33, alongside revenues of $191.29 million.
• Insider selling has occurred, with key executives selling nearly 444,500 shares valued at approximately $6.49 million in recent months.

Burford Capital Limited (NYSE:BUR - Free Report) - Investment analysts at Wedbush decreased their Q3 2025 earnings per share (EPS) estimates for shares of Burford Capital in a report issued on Thursday, August 14th. Wedbush analyst J. Mccanless now expects that the company will post earnings per share of $0.17 for the quarter, down from their previous forecast of $0.45. Wedbush has a "Outperform" rating and a $18.00 price objective on the stock. The consensus estimate for Burford Capital's current full-year earnings is $1.28 per share. Wedbush also issued estimates for Burford Capital's Q4 2025 earnings at $0.17 EPS, FY2025 earnings at $0.87 EPS, Q1 2026 earnings at $0.24 EPS, Q2 2026 earnings at $0.26 EPS, Q3 2026 earnings at $0.23 EPS, Q4 2026 earnings at $0.23 EPS and FY2026 earnings at $0.97 EPS.

Burford Capital (NYSE:BUR - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.06. Burford Capital had a return on equity of 7.48% and a net margin of 37.08%. The company had revenue of $191.29 million for the quarter, compared to analysts' expectations of $159.02 million.

Separately, Wall Street Zen cut shares of Burford Capital from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th.

Burford Capital Trading Down 1.4%

BUR opened at $13.39 on Monday. Burford Capital has a twelve month low of $10.70 and a twelve month high of $15.73. The company has a 50-day simple moving average of $13.16 and a 200 day simple moving average of $13.57. The company has a quick ratio of 10.09, a current ratio of 10.09 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $2.93 billion, a price-to-earnings ratio of 12.40 and a beta of 0.65.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Tower Research Capital LLC TRC grew its position in Burford Capital by 270.0% in the second quarter. Tower Research Capital LLC TRC now owns 33,382 shares of the company's stock valued at $476,000 after acquiring an additional 24,361 shares during the last quarter. Onex Canada Asset Management Inc. boosted its stake in shares of Burford Capital by 0.7% during the second quarter. Onex Canada Asset Management Inc. now owns 1,134,750 shares of the company's stock valued at $16,182,000 after purchasing an additional 8,137 shares in the last quarter. Orbis Allan Gray Ltd boosted its stake in shares of Burford Capital by 6.9% during the second quarter. Orbis Allan Gray Ltd now owns 7,732,120 shares of the company's stock valued at $110,260,000 after purchasing an additional 496,616 shares in the last quarter. Lazard Asset Management LLC boosted its stake in shares of Burford Capital by 1,636.0% during the second quarter. Lazard Asset Management LLC now owns 128,897 shares of the company's stock valued at $1,838,000 after purchasing an additional 121,472 shares in the last quarter. Finally, London Co. of Virginia boosted its stake in shares of Burford Capital by 73.9% during the second quarter. London Co. of Virginia now owns 37,361 shares of the company's stock valued at $533,000 after purchasing an additional 15,880 shares in the last quarter.

Insiders Place Their Bets

In other Burford Capital news, CIO Jonathan Todd Molot sold 210,000 shares of Burford Capital stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $14.60, for a total value of $3,066,000.00. Following the transaction, the executive owned 3,406,625 shares in the company, valued at $49,736,725. The trade was a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider David Perla sold 7,000 shares of Burford Capital stock in a transaction dated Wednesday, July 9th. The shares were sold at an average price of $14.60, for a total value of $102,200.00. Following the completion of the transaction, the insider owned 80,172 shares in the company, valued at approximately $1,170,511.20. This represents a 8.03% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 444,500 shares of company stock worth $6,489,700. Insiders own 8.90% of the company's stock.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced.

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