Burford Capital (NYSE:BUR) Shares Up 8.6% – Still a Buy?

Burford Capital Limited (NYSE:BUR)’s share price rose 8.6% during mid-day trading on Monday . The company traded as high as $4.41 and last traded at $4.4950. Approximately 730,312 shares changed hands during trading, a decline of 77% from the average daily volume of 3,110,487 shares. The stock had previously closed at $4.14.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Bank of America initiated coverage on shares of Burford Capital in a research report on Wednesday, February 18th. They set a “buy” rating on the stock. Weiss Ratings restated a “sell (d+)” rating on shares of Burford Capital in a research report on Friday, March 27th. Zacks Research lowered Burford Capital from a “hold” rating to a “strong sell” rating in a research note on Monday, March 2nd. Wedbush reissued a “neutral” rating and set a $4.75 target price (down from $6.00) on shares of Burford Capital in a research report on Monday, March 30th. Finally, Wall Street Zen lowered Burford Capital from a “hold” rating to a “sell” rating in a report on Sunday, December 21st. Three research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $12.00.

Burford Capital Stock Performance

The firm has a market capitalization of $981.77 million, a P/E ratio of 16.61 and a beta of 1.29. The firm has a 50-day moving average price of $8.26 and a two-hundred day moving average price of $9.37. The company has a debt-to-equity ratio of 0.68, a current ratio of 10.93 and a quick ratio of 10.93.

Burford Capital (NYSE:BUR) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.17) earnings per share for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.54). The company had revenue of $48.78 million for the quarter, compared to the consensus estimate of $168.30 million. Burford Capital had a net margin of 15.14% and a return on equity of 1.97%. On average, 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 issued a dividend of $0.0625 per share. This represents a yield of 147.0%. The ex-dividend date is Friday, May 22nd. Burford Capital’s dividend payout ratio (DPR) is presently 44.44%.

Institutional Investors Weigh In On Burford Capital

Hedge funds have recently made changes to their positions in the company. Mawer Investment Management Ltd. purchased a new position in Burford Capital during the 3rd quarter valued at about $8,113,000. Contrarian Capital Management L.L.C. increased its holdings in 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 buying an additional 1,488,250 shares during the period. Aberdeen Group plc increased its holdings in 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 buying an additional 497,780 shares during the period. SG Americas Securities LLC raised its stake in Burford Capital by 3,454.8% in the fourth quarter. SG Americas Securities LLC now owns 874,259 shares of the company’s stock worth $7,798,000 after buying an additional 849,665 shares in the last quarter. Finally, Pilgrim Partners Asia Pte Ltd purchased a new stake in Burford Capital during the third quarter worth $2,153,000.

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.