Burford Capital (NYSE:BUR) Releases Earnings Results, Misses Estimates By $0.07 EPS

Burford Capital (NYSE:BUR) announced its quarterly earnings data on Thursday. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.07), FiscalAI reports. Burford Capital had a net margin of 15.14% and a return on equity of 11.72%. During the same period in the prior year, the firm posted $0.39 earnings per share.

Here are the key takeaways from Burford Capital’s conference call:

• Liquidity and cash generation improved: Burford reported $157 million of quarterly cash generation and $733 million in cash and marketable securities, with only about $400 million of debt due over the next four years.
• Management highlighted several portfolio catalysts, including a more than $600 million Cameroon arbitration award, a U.S. jury verdict that could generate nearly $100 million for Burford, a favorable German Supreme Court ruling, and certification of a £5 billion Google advertising claim.
• Executives said the diversified, multi-hundred-case portfolio remains active and that historical returns from pre-pandemic vintages have not materially deteriorated, although extended litigation timelines may weigh on IRRs.
• New business commitments were below the 2025 pace as Burford reduced exposure to very large, moderately profitable deals and shifted toward smaller, more attractive risk-adjusted opportunities following the YPF-related market reaction.
• The company posted only a slightly profitable, roughly break-even quarter and acknowledged continued investor concern about leverage, slower realizations, elevated debt yields, and the need to reduce operating costs and deleverage.

Burford Capital Stock Performance

Shares of Burford Capital stock traded down $0.01 during trading on Thursday, reaching $4.26. The company’s stock had a trading volume of 2,737,054 shares, compared to its average volume of 1,820,684. The business’s 50-day moving average price is $4.26 and its 200-day moving average price is $5.97. The firm has a market cap of $934.33 million, a PE ratio of -0.58, a P/E/G ratio of 0.05 and a beta of 1.25. Burford Capital has a 52 week low of $3.59 and a 52 week high of $14.14. The company has a quick ratio of 13.72, a current ratio of 13.72 and a debt-to-equity ratio of 1.59.

Wall Street Analyst Weigh In

BUR has been the subject of a number of research analyst reports. Wedbush lifted their price target on Burford Capital from $4.75 to $5.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Wall Street Zen lowered Burford Capital from a “sell” rating to a “strong sell” rating in a research note on Saturday, May 16th. Weiss Ratings lowered Burford Capital from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Monday, May 11th. Zacks Research raised Burford Capital from a “strong sell” rating to a “hold” rating in a research report on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft downgraded Burford Capital from a “buy” rating to a “hold” rating and set a $5.00 target price for the company. in a research note on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Burford Capital presently has a consensus rating of “Hold” and a consensus target price of $9.33.

Hedge Funds Weigh In On Burford Capital

Hedge funds have recently bought and sold shares of the business. Schonfeld Strategic Advisors LLC raised its holdings in Burford Capital by 126.5% in the 4th quarter. Schonfeld Strategic Advisors LLC now owns 24,163 shares of the company’s stock valued at $216,000 after acquiring an additional 13,494 shares in the last quarter. Sciencast Management LP bought a new stake in shares of Burford Capital during the 4th quarter valued at $160,000. Graham Capital Management L.P. grew its holdings in shares of Burford Capital by 99.4% during the 4th quarter. Graham Capital Management L.P. now owns 21,400 shares of the company’s stock worth $191,000 after purchasing an additional 10,668 shares in the last quarter. Cibc World Markets Corp acquired a new stake in shares of Burford Capital during the 4th quarter worth $119,000. Finally, Franklin Resources Inc. increased its position in shares of Burford Capital by 102.4% in the fourth quarter. Franklin Resources Inc. now owns 25,041 shares of the company’s stock worth $223,000 after purchasing an additional 1,049,031 shares during the period.

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.