May 21, 2023 – Citigroup Inc. has announced a significant reduction in their stake in Burlington Stores, Inc., according to the most recent 13F filing with the Securities and Exchange Commission (SEC). The multinational investment bank reportedly sold 3,956 of its shares during the fourth quarter, resulting in a decrease of approximately 14.5 percent of the company’s total stake.
Burlington Stores is a popular retail chain that focuses on offering off-price apparel and home products to customers across the United States. Its extensive product portfolio includes everything from women’s ready-to-wear apparel and accessories to beauty products, gifts, and toys.
Despite its seemingly diverse offerings, however, shares of NYSE BURL opened at just $167.88 on Friday; as such, some investors may question whether Citigroup’s decision to trim its holdings is indicative of a wider trend or simply an isolated case.
Nevertheless, as the major player’s holdings were valued at $4,749,000 as per the most recent SEC filing — prior to it selling off some— it is worth considering what may have prompted this move. CitiGroup has not provided any specific reasons for its decision so far.
It should be noted that while Burlington Stores has consistently outperformed many competitors in terms of value growth since its initial public offering in October 2013 – when they opened at $17 a share – last year’s pandemic-induced recession hit all things fashion badly.
Furthermore, with current ratios and quick ratios being less than ideal predictors amidst turbulent times for business – currently at 1.19 and 0.58 respectively for Burlington Stores – market cap ($10.90 billion) matters more in monetary terms for investors nowadays.
The company does possess an impressive P/E ratio (47.83) along with good P/E/G ratio results (0.89), indicating that present performance may not be reflective of its larger profit potential across time.
Amidst all these uncertainties, the public may be wondering what’s next for Burlington Stores and whether this recent development will affect them in the long run. With a 50-day moving average of $192.24 and a two-hundred day moving average of $199.02, only time can tell where it lands on the retail map going forward but one thing we are sure of- the economy is still facing an uncertain future in these trying times.
Updated on: 22/05/2023
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Investor Activity and Growth Prospects of Burlington Stores, Inc.
Burlington Stores, Inc. is a prominent off-price retail chain that operates across various segments such as men’s apparel, women’s ready-to-wear apparel, kids’ apparel and baby products, outerwear, home goods, beauty products and toys. The company recently reported its quarterly earnings on March 2nd revealing $2.96 earnings per share for the quarter which surpassed analysts’ projections of $2.72 by $0.24 with revenue of $2.74 billion during the quarter – higher than the expected $2.61 billion.
Institutional investors and hedge funds alike have bought shares in the company with Artemis Investment Management LLP acquiring a new stake in shares of Burlington Stores during Q4 worth about $77,761,000 and DSM Capital Partners LLC doing the same in Q3 valued at roughly $21,932,000 Both Renaissance Technologies LLC, which purchased shares during 1Q 2023 for around $32,791,000 and Clearbridge Investments LLC during the recent 1Q increased their position holding by acquiring additional shares boosting their stake by acquiring 298,837 and 117% respectively.
Additionally we see two insiders selling their shares; Director William P Mcnamara sold shares totaling to 500 at an average price of $212.26 resulting in a total transaction value of $106130 following which he held onto 8k+ shares . CMO Jennifer Vecchio also sold around about more than forty seven thousand (47K) shares at an average price of two hundred nine dollars ($209) generating a sum total of apx ten million ($9.87m). It’s interesting to observe these insider actions alongside significant institutional investor activity because they can often signal what could happen next within the organization.
Research institutions such as Robert W Baird have been quite bullish with rating Burlington Stores’ shares as moderate buy with a consensus target price among analysts being set at approximately two hundred twenty-six dollars eighty cents. However, Jefferies Financial Group issued a price target of $225 down from the previous $260 making it one of only a few bearish evaluations on the stock.
The company has shown exponential growth and has come a long way since its inception in 1972 as a single store. Today, with hundreds of stores spread across America, it has managed to consistently appeal to customers by way offering high-quality products at discounted rates which is reflected in their impressive earnings report for Q1. The recent activity on the part of investors could help secure Burlington Stores Inc.’s position in the market as well as drive future growth prospects.
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