Burlington Stores, Inc. (BURL) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Burlington Stores, Inc. (NYSE:BURL) from a buy rating to a hold rating in a research report released on Tuesday morning.

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 equities analysts also recently issued reports on the stock. Cowen and Company reissued a buy rating and set a $110.00 price objective on shares of Burlington Stores in a research note on Friday, November 10th. BidaskClub raised shares of Burlington Stores from a sell rating to a hold rating in a research note on Friday, November 3rd. Buckingham Research reissued a buy rating and set a $107.00 price objective on shares of Burlington Stores in a research note on Thursday, October 19th. SunTrust Banks, Inc. set a $109.00 price objective on shares of Burlington Stores and gave the company 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 set a buy rating and a $108.00 price objective on the stock. Four investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus price target of $105.96.

Shares of Burlington Stores (NYSE BURL) traded up $1.65 on Tuesday, hitting $100.15. 914,000 shares of the company traded hands, compared to its average volume of 1,075,331. The company has a quick ratio of 0.24, a current ratio of 1.03 and a debt-to-equity ratio of -13.31. The stock has a market capitalization of $7,220.00, a P/E ratio of 26.41, a price-to-earnings-growth ratio of 1.33 and a beta of 0.51. Burlington Stores has a fifty-two week low of $74.01 and a fifty-two week high of $104.07.

Burlington Stores (NYSE:BURL) last announced its quarterly earnings data on Thursday, August 24th. The company reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.22. The business 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 company’s quarterly revenue was up 8.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.39 earnings per share. equities research analysts expect that Burlington Stores will post 4.24 earnings per share for the current fiscal year.

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Burlington Stores announced that its board has initiated a stock repurchase program on Thursday, August 24th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

In related news, insider Fred Hand sold 8,000 shares of the firm’s stock in a transaction on Monday, September 11th. The shares were sold at an average price of $87.80, for a total transaction of $702,400.00. Following the completion of the sale, the insider now directly owns 76,309 shares of the company’s stock, valued at approximately $6,699,930.20. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Thomas Kingsbury sold 20,000 shares of the firm’s stock in a transaction on Monday, September 11th. The shares were sold at an average price of $87.81, for a total transaction of $1,756,200.00. Following the sale, the chief executive officer now directly owns 495,308 shares of the company’s stock, valued at $43,492,995.48. The disclosure for this sale can be found here. Insiders sold 87,922 shares of company stock valued at $8,052,750 in the last three months. Company insiders own 2.60% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Prudential Financial Inc. grew its holdings in Burlington Stores by 106.4% during the 2nd quarter. Prudential Financial Inc. now owns 799,810 shares of the company’s stock valued at $73,575,000 after purchasing an additional 412,380 shares in the last quarter. Old Mutual Global Investors UK Ltd. grew its holdings in Burlington Stores by 582.2% during the 2nd quarter. Old Mutual Global Investors UK Ltd. now owns 483,077 shares of the company’s stock valued at $44,438,000 after purchasing an additional 412,262 shares in the last quarter. Fox Run Management L.L.C. acquired a new stake in Burlington Stores during the 2nd quarter valued at $248,000. Teacher Retirement System of Texas grew its holdings in Burlington Stores by 0.7% during the 2nd quarter. Teacher Retirement System of Texas now owns 5,619 shares of the company’s stock valued at $517,000 after purchasing an additional 41 shares in the last quarter. Finally, 1060 Capital LLC acquired a new stake in Burlington Stores during the 2nd quarter valued at $27,597,000.

Burlington Stores Company Profile

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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