Burford Capital (NYSE:BUR) Shares Down 8.4% – Here’s Why

Shares of Burford Capital Limited (NYSE:BUR) traded down 8.4% during mid-day trading on Tuesday . The company traded as low as $4.61 and last traded at $4.5710. 1,254,101 shares were traded during mid-day trading, a decline of 60% from the average session volume of 3,137,525 shares. The stock had previously closed at $4.99.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Bank of America assumed coverage on Burford Capital in a research note on Wednesday, February 18th. They issued a “buy” rating on the stock. Weiss Ratings reiterated a “sell (d+)” rating on shares of Burford Capital in a research note on Friday, March 27th. Zacks Research cut Burford Capital from a “hold” rating to a “strong sell” rating in a research note on Monday, March 2nd. Finally, Wedbush reiterated a “neutral” rating and issued a $4.75 target price (down from $6.00) on shares of Burford Capital in a research note on Monday, March 30th. Three research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $12.00.

Burford Capital Price Performance

The company has a quick ratio of 10.93, a current ratio of 10.93 and a debt-to-equity ratio of 0.68. The company has a market capitalization of $977.38 million, a P/E ratio of 16.54 and a beta of 1.29. The business has a 50 day simple moving average of $7.02 and a 200-day simple moving average of $8.69.

Burford Capital (NYSE:BUR) last posted its earnings results on Friday, February 27th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.54). Burford Capital had a net margin of 15.14% and a return on equity of 1.97%. The company had revenue of $48.78 million during the quarter, compared to the consensus estimate of $168.30 million. Analysts predict that Burford Capital Limited will post -0.63 EPS for the current fiscal year.

Burford Capital Dividend Announcement

The business also recently disclosed a dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be paid a dividend of $0.0625 per share. This represents a dividend yield of 147.0%. The ex-dividend date is Friday, May 22nd. Burford Capital’s payout ratio is currently 44.44%.

Institutional Investors Weigh In On Burford Capital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Aberdeen Group plc raised its stake in shares of Burford Capital by 26.8% during the fourth quarter. Aberdeen Group plc now owns 2,357,279 shares of the company’s stock valued at $21,027,000 after purchasing an additional 497,780 shares in the last quarter. Mawer Investment Management Ltd. bought a new stake in shares of Burford Capital during the third quarter valued at about $8,113,000. Contrarian Capital Management L.L.C. raised its stake in shares of Burford Capital by 58.2% during the third quarter. Contrarian Capital Management L.L.C. now owns 4,044,998 shares of the company’s stock valued at $48,378,000 after purchasing an additional 1,488,250 shares in the last quarter. SG Americas Securities LLC raised its stake in shares of Burford Capital by 3,454.8% during the fourth quarter. SG Americas Securities LLC now owns 874,259 shares of the company’s stock valued at $7,798,000 after purchasing an additional 849,665 shares in the last quarter. Finally, Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Burford Capital during the third quarter valued at about $2,153,000.

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.