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

Burford Capital Limited (NYSE:BUR)’s share price gapped down prior to trading 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 trading hands.

BUR has been the subject of a number of other research reports. Wall Street Zen cut Burford Capital from a “hold” rating to a “sell” rating in a research note on Sunday, December 21st. Zacks Research cut Burford Capital from a “hold” rating to a “strong sell” rating in a report on Monday, March 2nd. Weiss Ratings reissued a “sell (d+)” rating on shares of Burford Capital in a research report on Friday. Finally, Bank of America started coverage on shares of Burford Capital in a research note on Wednesday, February 18th. They set a “buy” rating for the company. 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 data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $12.00.

Burford Capital News Roundup

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

• Positive Sentiment: Wedbush kept an “outperform” rating and set a $6 price target (down from $13), signaling buy-side support that may underpin a short-term rebound despite lower targets. Wedbush coverage
• Neutral Sentiment: Burford issued a formal statement addressing the Second Circuit’s YPF decision and investor questions — the company is signaling it will review options but legal uncertainty remains. Burford statement
• Neutral Sentiment: Broker summary/coverage mentions Burford among other names (Sharecast roundup) — keeps the name on analysts’ radars but adds no clear consensus direction. Broker tips
• Negative Sentiment: The US Court of Appeals (Second Circuit) overturned the YPF judgment that had been one of Burford’s most valuable assets; that reversal triggered a >40% sell-off and is the principal driver of the recent price collapse. Appeals court update
• Negative Sentiment: Berenberg and other brokers sharply cut target prices following the US court reversal, reflecting materially reduced expected recoveries from the YPF-related asset. Berenberg cut
• Negative Sentiment: B. Riley lowered its price target to $7.50 (from $18), joining a wave of downgrades that cap near-term upside until legal clarity returns. B. Riley cut
• Negative Sentiment: Analysts and the Financial Times highlight that Burford’s setback underscores broader risks for listed litigation funders — increased legal and valuation volatility may keep the stock under pressure. FT analysis

Institutional Trading of Burford Capital

Several institutional investors and hedge funds have recently modified their holdings of the stock. Mercer Global Advisors Inc. ADV purchased a new position in shares of Burford Capital during the fourth quarter valued at approximately $157,000. XTX Topco Ltd purchased a new stake in Burford Capital in the 4th quarter valued at $255,000. Voloridge Investment Management LLC purchased a new stake in Burford Capital in the 4th quarter valued at $5,587,000. Claar Advisors LLC lifted its stake in Burford Capital by 14.8% during the 4th quarter. Claar Advisors LLC now owns 839,745 shares of the company’s stock valued at $7,491,000 after acquiring an additional 108,307 shares in the last quarter. Finally, Bridgeway Capital Management LLC bought a new position in Burford Capital during the 4th quarter valued at $11,316,000.

Burford Capital Stock Up 11.8%

The company has a current ratio of 10.93, a quick ratio of 10.93 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $985.93 million, a PE ratio of 16.68, a P/E/G ratio of 0.10 and a beta of 0.66. The stock’s fifty day simple moving average is $8.59 and its 200-day simple moving average is $9.55.

Burford Capital (NYSE:BUR) last announced its earnings results on Thursday, February 26th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of $0.37 by ($0.54). Burford Capital had a net margin of 15.14% and a return on equity of 1.97%. The firm had revenue of $48.78 million during the quarter, compared to analysts’ expectations of $168.30 million. As a group, sell-side analysts forecast that Burford Capital Limited will post 1.28 EPS for the current fiscal year.

Burford Capital Announces Dividend

The company also recently disclosed a dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be paid a $0.0625 dividend. The ex-dividend date is Friday, May 22nd. This represents a 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.