Zacks Research Downgrades Burford Capital (NYSE:BUR) to Strong Sell

Key Points

• Zacks Research downgraded Burford Capital to “strong sell” from “hold,” while other analyst views remain mixed. MarketBeat data shows a consensus “hold” rating and a $9.33 price target.
• Burford shares opened at $4.33, near their 52-week low of $3.59 and well below the 52-week high of $14.14; the stock was up 1.3% in trading.
• The company’s latest quarterly earnings missed expectations, reporting $0.01 in EPS versus an anticipated $0.08, although revenue of $110.68 million exceeded estimates of $103.08 million.

Burford Capital (NYSE:BUR - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

BUR has been the subject of several other research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Burford Capital in a research report on Friday. Wedbush lifted their price objective on shares of Burford Capital from $4.75 to $5.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft cut shares of Burford Capital from a "buy" rating to a "hold" rating and set a $5.00 target price for the company. in a report on Monday, May 11th. B. Riley Financial reissued a "buy" rating on shares of Burford Capital in a report on Thursday, May 14th. Finally, Wall Street Zen upgraded Burford Capital from a "strong sell" rating to a "sell" rating in a research report on Saturday. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Burford Capital has a consensus rating of "Hold" and a consensus price target of $9.33.

Burford Capital Trading Up 1.3%

NYSE:BUR opened at $4.33 on Monday. The stock's 50 day moving average price is $4.25 and its 200 day moving average price is $5.86. The company has a market capitalization of $951.88 million, a PE ratio of -0.56, a P/E/G ratio of 0.05 and a beta of 1.25. The company has a quick ratio of 9.56, a current ratio of 9.56 and a debt-to-equity ratio of 1.64. Burford Capital has a 52-week low of $3.59 and a 52-week high of $14.14.

Burford Capital (NYSE:BUR - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.07). The firm had revenue of $110.68 million during the quarter, compared to analysts' expectations of $103.08 million. Burford Capital had a net margin of 15.14% and a return on equity of 10.24%. During the same quarter in the prior year, the firm posted $0.39 EPS. On average, research analysts anticipate that Burford Capital will post 2.11 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Signaturefd LLC raised its holdings in Burford Capital by 1,687.7% during the fourth quarter. Signaturefd LLC now owns 2,914 shares of the company's stock worth $26,000 after purchasing an additional 2,751 shares in the last quarter. Strs Ohio purchased a new stake in Burford Capital in the 1st quarter valued at approximately $55,000. Quadrant Capital Group LLC acquired a new position in Burford Capital during the 4th quarter worth approximately $53,000. Insigneo Advisory Services LLC purchased a new position in shares of Burford Capital during the 4th quarter worth approximately $93,000. Finally, Equitable Holdings Inc. purchased a new position in shares of Burford Capital during the 4th quarter worth approximately $94,000.

Burford Capital Company Profile

Burford Capital NYSE: BUR is a leading global finance firm that specializes in litigation and arbitration funding, risk management, and asset recovery. The company provides capital to law firms and corporate clients to finance legal fees and associated costs in commercial disputes. In exchange for funding, Burford shares in any awards or settlements, enabling clients to pursue meritorious claims without bearing upfront legal expenses.

Founded in 2009 by Christopher Bogart, Burford was among the first firms to establish a dedicated litigation finance business.

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