Burford Capital (NYSE:BUR) Shares Gap Down on Analyst Downgrade

Burford Capital Limited (NYSE:BUR) gapped down before the market opened on Monday after Wedbush lowered their price target on the stock from $13.00 to $6.00. The stock had previously closed at $4.14, but opened at $3.93. Wedbush currently has an outperform rating on the stock. Burford Capital shares last traded at $4.0450, with a volume of 3,065,406 shares changing hands.

Other equities analysts have also recently issued reports about the stock. Wall Street Zen cut shares of Burford Capital from a “hold” rating to a “sell” rating in a research report on Sunday, December 21st. Zacks Research cut shares of Burford Capital from a “hold” rating to a “strong sell” rating in a research report on Monday, March 2nd. Bank of America started coverage on Burford Capital in a research note on Wednesday, February 18th. They set a “buy” rating on the stock. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Burford Capital in a report on Friday. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Burford Capital has an average rating of “Hold” and an average target price of $12.00.

Key Headlines Impacting Burford Capital

Here are the key news stories impacting Burford Capital this week:

• Positive Sentiment: Wedbush cut its price target from $13 to $6 but retained an “outperform” rating, signaling the firm still sees meaningful upside versus current levels. Read More.
• Neutral Sentiment: Burford issued a further statement on the Second Circuit decision, reiterating its view and answering investor questions — the company is communicating but outcome uncertainty remains. Read More.
• Neutral Sentiment: Broker comment roundup mentions Burford among other UK/energy/real-estate names; these broker notes may generate trading but contain mixed views. Read More.
• Negative Sentiment: The US Court of Appeals for the Second Circuit overturned the YPF judgment that underpinned a major Burford asset, removing a previously recognized recoverable value and triggering the market reaction. Read More.
• Negative Sentiment: Berenberg and other brokers cut target prices after the court reversal, reflecting lower recoverable case value and higher uncertainty for listed litigation funders. Read More.
• Negative Sentiment: Market reaction: Burford shares fell sharply (reports cite a >40% drop on Friday), and the stock hit a new 52-week low as investors reprice litigation assets and tail risk. Read More.
• Negative Sentiment: Additional market note: LSE/market updates and commentary confirm the appeals-court reversal as the proximate cause of the sell-off and analyst revisions. Read More.

Institutional Investors Weigh In On Burford Capital

Several large investors have recently made changes to their positions in the stock. Orbis Allan Gray Ltd raised its holdings in shares of Burford Capital by 31.1% during the fourth quarter. Orbis Allan Gray Ltd now owns 12,051,544 shares of the company’s stock worth $107,500,000 after acquiring an additional 2,859,722 shares during the period. Ameriprise Financial Inc. boosted its stake in Burford Capital by 2.5% in the 3rd quarter. Ameriprise Financial Inc. now owns 9,418,521 shares of the company’s stock worth $107,170,000 after purchasing an additional 229,979 shares during the period. Bank of Montreal Can increased its holdings in Burford Capital by 24.8% during the 4th quarter. Bank of Montreal Can now owns 6,779,231 shares of the company’s stock worth $60,471,000 after purchasing an additional 1,346,663 shares in the last quarter. Invesco Ltd. increased its holdings in Burford Capital by 34.3% during the 2nd quarter. Invesco Ltd. now owns 6,078,537 shares of the company’s stock worth $86,680,000 after purchasing an additional 1,551,357 shares in the last quarter. Finally, Cooke & Bieler LP raised its stake in shares of Burford Capital by 31.0% in the 4th quarter. Cooke & Bieler LP now owns 5,194,551 shares of the company’s stock valued at $46,335,000 after purchasing an additional 1,228,328 shares during the period.

Burford Capital Price Performance

The stock has a market cap of $885.45 million, a price-to-earnings ratio of 14.98, a P/E/G ratio of 0.11 and a beta of 0.66. The company has a 50 day simple moving average of $8.69 and a 200-day simple moving average of $9.61. The company has a current ratio of 10.93, a quick ratio of 10.93 and a debt-to-equity ratio of 0.68.

Burford Capital (NYSE:BUR) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.54). Burford Capital had a return on equity of 1.97% and a net margin of 15.14%.The firm had revenue of $48.78 million for the quarter, compared to analyst estimates of $168.30 million. Research analysts expect that Burford Capital Limited will post 1.28 EPS for the current year.

Burford Capital Dividend Announcement

The firm also recently disclosed a dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be issued a $0.0625 dividend. The ex-dividend date is Friday, May 22nd. This represents a dividend yield of 147.0%. Burford Capital’s dividend payout ratio (DPR) is 44.44%.

About Burford Capital

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.