Does Burlington Stores Inc. (BURL) offer a good opportunity for investors?

Burlington Stores Inc. (NYSE: BURL) stock fell -4.81% on Friday to $154.00 against a previous-day closing price of $161.78. With 1.03 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.13 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $160.68 whereas the lowest price it dropped to was $153.49. The 52-week range on BURL shows that it touched its highest point at $357.34 and its lowest point at $133.28 during that stretch. It currently has a 1-year price target of $198.44. Beta for the stock currently stands at 0.84.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BURL was up-trending over the past week, with a rise of 4.02%, but this was up by 4.78% over a month. Three-month performance dropped to -18.35% while six-month performance fell -30.86%. The stock lost -53.86% in the past year, while it has lost -47.17% so far this year. A look at the trailing 12-month EPS for BURL yields 3.73 with Next year EPS estimates of 8.12. For the next quarter, that number is 1.49. This implies an EPS growth rate of 282.80% for this year and 35.20% for next year. EPS is expected to grow by 9.15% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.80%.

Float and Shares Shorts:

At present, 66.28 million BURL shares are outstanding with a float of 65.84 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.95 million, which was 5.99% higher than short shares on Jun 14, 2022. In addition to Mr. Michael B. O’Sullivan as the firm’s CEO & Director, Ms. Jennifer Vecchio serves as its Group Pres & Chief Merchandising Officer.

Institutional Ownership:

Through their ownership of 116.82% of BURL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 70.30% of BURL, in contrast to 38.28% held by mutual funds. Shares owned by individuals account for 17.68%. As the largest shareholder in BURL with 13.96% of the stake, T. Rowe Price Associates, Inc. holds 9,221,227 shares worth 9,221,227. A second-largest stockholder of BURL, The Vanguard Group, Inc., holds 5,748,482 shares, controlling over 8.70% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in BURL, holding 3,658,689 shares or 5.54% stake. With a 3.78% stake in BURL, the T Rowe Price Mid Cap Growth Fund is the largest stakeholder. A total of 2,497,400 shares are owned by the mutual fund manager. The American Funds AMCAP Fund, which owns about 3.77% of BURL stock, is the second-largest Mutual Fund holder. It holds 2,492,770 shares valued at 339.59 million. American Funds Growth Fund of Ame holds 3.24% of the stake in BURL, owning 2,139,940 shares worth 291.52 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BURL since 21 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BURL analysts setting a high price target of $275.00 and a low target of $120.00, the average target price over the next 12 months is $194.89. Based on these targets, BURL could surge 78.57% to reach the target high and fall by -22.08% to reach the target low. Reaching the average price target will result in a growth of 26.55% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BURL will report FY 2023 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $6.87 being high and $4.60 being low. For BURL, this leads to a yearly average estimate of $5.90. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Burlington Stores Inc. surprised analysts by -$0.09 when it reported $0.54 EPS against a consensus estimate of $0.63. The surprise factor in the prior quarter was -$0.69. Based on analyst estimates, the high estimate for the next quarter is $0.47 and the low estimate is $0.11. The average estimate for the next quarter is thus $0.24.

Summary of Insider Activity:

Insiders traded BURL stock several times over the past three months with 10 Buys and 2 Sells. In these transactions, 17,033 shares were bought while 8,866 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 67,017 while 49,395 shares were sold.

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