Burlington Stores, Inc. (BURL) Downgraded by Zacks Investment Research
Burlington Stores, Inc. (NYSE:BURL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “In an intensely competitive retail landscape, Burlington Stores has made multiple changes to its business model to adapt to the ongoing changes in the industry. The strategic initiatives have aided the company to continue register growth in both the top and bottom lines, which in turn has helped the stock to outpace the industry in a year. Management is confident about posting year-over-year increase in both the top and bottom lines in fiscal 2017. The company now envisions adjusted earnings in the range of $4.11-$4.18 per share up from $3.24 reported in the prior year. Notably, over the years the company has increased vendor counts, made technological advancements, initiated better marketing approach and focused on localized assortments. These along with effective inventory management and cost containment efforts have helped elevate gross margin. Of late, estimates have increased ahead of the third quarter results.”
Several other brokerages also recently commented on BURL. Cowen and Company reaffirmed a “buy” rating and issued a $110.00 target price on shares of Burlington Stores in a research note on Friday. BidaskClub raised shares of Burlington Stores from a “sell” rating to a “hold” rating in a research note on Friday, November 3rd. Buckingham Research reaffirmed a “buy” rating and issued a $107.00 target price on shares of Burlington Stores in a research note on Thursday, October 19th. SunTrust Banks, Inc. set a $109.00 target price on shares of Burlington Stores and gave the stock a “buy” rating in a research note on Monday, October 16th. Finally, Deutsche Bank AG began coverage on shares of Burlington Stores in a research note on Thursday, September 14th. They issued a “buy” rating and a $108.00 target price on the stock. Four analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. Burlington Stores has an average rating of “Buy” and an average price target of $105.96.
Burlington Stores (BURL) traded down $0.05 during mid-day trading on Tuesday, hitting $98.25. 838,200 shares of the company’s stock traded hands, compared to its average volume of 1,076,842. The stock has a market capitalization of $6,780.00, a P/E ratio of 26.35, a PEG ratio of 1.33 and a beta of 0.51. Burlington Stores has a 52-week low of $73.13 and a 52-week high of $104.07. The company has a debt-to-equity ratio of -13.31, a current ratio of 1.03 and a quick ratio of 0.24.
Burlington Stores (NYSE:BURL) last posted its quarterly earnings results on Thursday, August 24th. The company reported $0.72 EPS for the quarter, topping the consensus estimate of $0.50 by $0.22. The firm had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.35 billion. Burlington Stores had a net margin of 4.46% and a negative return on equity of 330.30%. The business’s revenue was up 8.6% compared to the same quarter last year. During the same period last year, the firm posted $0.39 earnings per share. equities analysts forecast that Burlington Stores will post 4.24 EPS for the current fiscal year.
Burlington Stores announced that its Board of Directors has approved a share buyback plan on Thursday, August 24th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.
In related news, EVP Joyce Manning Magrini sold 2,400 shares of the company’s stock in a transaction dated Wednesday, November 1st. The shares were sold at an average price of $95.37, for a total value of $228,888.00. Following the transaction, the executive vice president now owns 46,013 shares in the company, valued at approximately $4,388,259.81. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Marc Katz sold 11,000 shares of the company’s stock in a transaction dated Monday, August 28th. The stock was sold at an average price of $87.25, for a total transaction of $959,750.00. Following the completion of the transaction, the chief financial officer now owns 124,555 shares in the company, valued at approximately $10,867,423.75. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 67,922 shares of company stock worth $6,082,550. Company insiders own 2.60% of the company’s stock.
A number of large investors have recently modified their holdings of the business. Raymond James Trust N.A. raised its position in Burlington Stores by 1.1% in the 2nd quarter. Raymond James Trust N.A. now owns 3,808 shares of the company’s stock worth $350,000 after buying an additional 40 shares during the last quarter. Teacher Retirement System of Texas raised its position in Burlington Stores by 0.7% in the 2nd quarter. Teacher Retirement System of Texas now owns 5,619 shares of the company’s stock worth $517,000 after buying an additional 41 shares during the last quarter. Advisor Group Inc. raised its position in Burlington Stores by 9.2% in the 2nd quarter. Advisor Group Inc. now owns 1,520 shares of the company’s stock worth $139,000 after buying an additional 128 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Burlington Stores by 6.6% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,081 shares of the company’s stock worth $283,000 after buying an additional 191 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Burlington Stores by 10.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,257 shares of the company’s stock worth $208,000 after buying an additional 210 shares during the last quarter.
About Burlington Stores
Burlington Stores, Inc is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys.
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