Burford Capital (NYSE:BUR) Posts Earnings Results

Burford Capital (NYSE:BUR) issued its quarterly earnings data on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.07), FiscalAI reports. The business had revenue of $110.68 million for the quarter, compared to analyst estimates of $103.08 million. Burford Capital had a net margin of 15.14% and a return on equity of 9.12%. During the same quarter in the prior year, the business earned $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 Up 2.8%

Shares of BUR traded up $0.12 during trading hours on Friday, reaching $4.42. 2,781,113 shares of the stock traded hands, compared to its average volume of 1,844,138. Burford Capital has a 52 week low of $3.59 and a 52 week high of $14.14. The company has a market cap of $968.29 million, a price-to-earnings ratio of -0.57, a PEG ratio of 0.05 and a beta of 1.25. The stock has a fifty day simple moving average of $4.26 and a 200 day simple moving average of $5.96. The company has a current ratio of 13.72, a quick ratio of 13.72 and a debt-to-equity ratio of 1.59.

Institutional Investors Weigh In On Burford Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in BUR. Strs Ohio purchased a new position in shares of Burford Capital in the 1st quarter worth approximately $55,000. Quadrant Capital Group LLC purchased a new stake in shares of Burford Capital during the fourth quarter valued at approximately $53,000. Insigneo Advisory Services LLC bought a new stake in Burford Capital during the fourth quarter worth $93,000. Equitable Holdings Inc. bought a new stake in Burford Capital during the fourth quarter worth $94,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in Burford Capital in the third quarter worth $128,000.

Analyst Ratings Changes

BUR has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft cut shares of Burford Capital from a “buy” rating to a “hold” rating and set a $5.00 price target on the stock. in a research report on Monday, May 11th. B. Riley Financial reissued a “buy” rating on shares of Burford Capital in a research note on Thursday, May 14th. Zacks Research upgraded Burford Capital from a “strong sell” rating to a “hold” rating in a report on Friday, May 8th. Wedbush raised their target price on Burford Capital from $4.75 to $5.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Finally, Weiss Ratings cut Burford Capital from a “sell (d+)” rating to a “sell (d-)” rating in a research report on Monday, May 11th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Burford Capital has an average rating of “Hold” and an average target price of $9.33.

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.