NEW YORK - Burford Capital, a prominent global finance firm specializing in legal finance, is poised to be included in the Russell 3000® and Russell 2000® Indexes as of July 1, 2024. This marks a significant milestone for the company and the legal finance industry, as Burford will become the first firm of its kind to join these indexes. The inclusion reflects Burford's growth trajectory and its role in supporting clients such as Fortune 500 companies and major law firms.
The firm, which is celebrating its 15th anniversary in October 2024, has demonstrated its ability to assist clients in managing the financial aspects of litigation. Burford's innovative approach allows companies to transform legal departments from cost centers into sources of capital. In 2023, Burford funded a landmark case resulting in a $16 billion judgment, the largest in the history of the US District Court for the Southern District of New York.
Christopher Bogart, CEO of Burford Capital, highlighted the growing demand for legal finance, citing a recent $325 million commitment with a Fortune 50 company as evidence of the industry's momentum. Bogart expressed pride in Burford's upcoming inclusion in the Russell indexes, which are benchmarks for approximately $10.5 trillion in assets as of December 2023.
Russell indexes are crucial for investment managers and institutional investors, serving both as benchmarks for active strategies and as the basis for index funds. Burford's entry into these indexes is expected to enhance its visibility among investors and clients.
Burford Capital operates globally, with offices in key financial centers including New York, London, and Singapore. It is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), offering a range of legal finance and advisory services.
The information regarding Burford Capital's expected inclusion in the Russell 3000® and 2000® Indexes is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Burford Capital gears up for its inclusion in the Russell 3000® and Russell 2000® Indexes, the company's financial metrics reflect a robust performance. With a market capitalization of $3.16 billion, Burford's valuation is underpinned by a P/E ratio of 9.75, which is low relative to near-term earnings growth, suggesting potential for value investors. This is particularly interesting as the company's gross profit margin stands at an impressive 99.08% for the last twelve months as of Q1 2024, indicating strong operational efficiency.
Revenue growth has been extraordinary, with a 361.37% increase over the last twelve months as of Q1 2024. This level of growth is a testament to the company's ability to expand its operations and client base effectively. Moreover, Burford's liquid assets exceed its short-term obligations, providing a cushion for the company to manage its financials flexibly and securely.
InvestingPro Tips for Burford Capital highlight that analysts predict the company will remain profitable this year, which aligns with the company's track record of profitability over the last twelve months. Moreover, there are 6 more InvestingPro Tips available, which could provide further depth into the company's financial health and outlook. For investors seeking more comprehensive analysis, they can explore these additional tips by visiting https://www.investing.com/pro/BUR and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It is important to note that while analysts anticipate a sales decline in the current year and expect net income to drop, the long-term view remains positive, with the company having delivered a high return over the last decade. As Burford Capital prepares to enter the Russell indexes, these financial metrics and insights could be crucial for investors considering the company's stock.
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