Navigating the Volatility of Burford Capital Limited’s (BUR) Stock

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The stock of Burford Capital Limited (BUR) has seen a -7.81% decrease in the past week, with a -4.86% drop in the past month, and a -22.19% decrease in the past quarter. The volatility ratio for the week is 3.36%, and the volatility levels for the past 30 days are at 3.21% for BUR. The simple moving average for the last 20 days is -7.61% for BUR’s stock, with a simple moving average of -12.18% for the last 200 days.

Is It Worth Investing in Burford Capital Limited (NYSE: BUR) Right Now?

Burford Capital Limited (NYSE: BUR) has a price-to-earnings ratio that is above its average at 8.71x. The stock has a 36-month beta value of 1.31. Opinions on the stock are mixed, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The public float for BUR is 187.84M, and at present, short sellers hold a 4.25% of that float. On August 09, 2024, the average trading volume of BUR was 1.53M shares.

BUR) stock’s latest price update

Burford Capital Limited (NYSE: BUR) has experienced a rise in its stock price by 0.16 compared to its previous closing price of 12.50. However, the company has seen a fall of -7.81% in its stock price over the last five trading days. zacks.com reported 2024-08-08 that Burford Capital Limited (BUR) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to loss of $0.10 per share a year ago.

Analysts’ Opinion of BUR

B. Riley Securities, on the other hand, stated in their research note that they expect to see BUR reach a price target of $15. The rating they have provided for BUR stocks is “Buy” according to the report published on May 13th, 2022.

Wedbush gave a rating of “Outperform” to BUR, setting the target price at $15 in the report published on June 04th of the previous year.

BUR Trading at -7.53% from the 50-Day Moving Average

After a stumble in the market that brought BUR to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -29.27% of loss for the given period.

Volatility was left at 3.21%, however, over the last 30 days, the volatility rate increased by 3.36%, as shares sank -7.26% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.83% lower at present.

During the last 5 trading sessions, BUR fell by -7.81%, which changed the moving average for the period of 200-days by +1.13% in comparison to the 20-day moving average, which settled at $13.50. In addition, Burford Capital Limited saw -19.74% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for BUR

Current profitability levels for the company are sitting at:

  • 0.66 for the present operating margin
  • 0.8 for the gross margin

The net margin for Burford Capital Limited stands at 0.48. The total capital return value is set at 0.07. Equity return is now at value 15.10, with 6.01 for asset returns.

Based on Burford Capital Limited (BUR), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at -0.11. The debt to equity ratio resting at 0.8. The interest coverage ratio of the stock is 4.25.

Currently, EBITDA for the company is 725.05 million with net debt to EBITDA at 3.25. When we switch over and look at the enterprise to sales, we see a ratio of 6.03. The receivables turnover for the company is 5.13for trailing twelve months and the total asset turnover is 0.11.

Conclusion

To sum up, Burford Capital Limited (BUR) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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