(Alliance News) - Investment firm Burford Capital Ltd said on Friday that more executives have purchased shares in the company in reaction to a sharp fall in its trade price this week.
In a transaction on Thursday, Deputy Chair Hugh Wilson purchased 25,000 shares at 797.55 pence each, GBP199,388 altogether. Director Charles Parkinson bought 8,000 shares at 655.00p each, a total cost of GBP52,400.
On Thursday, the company said Chief Executive Christopher Bogart and Investment Chief Jonathan Molot both bought shares at 663.77p, each.
Bogart purchased 123,747 at GBP821,395 altogether and Molot acquired 350,643 shares for GBP2.3 million in total.
Shares in the firm recovered on Friday morning, trading 4.9% higher at 798.00 pence each in London.
The company's stock plunged on Wednesday, closing at 594.00 pence each, compared with its Tuesday closing price of 1,115.00p, after US research firm Muddy Waters Capital LLC published a scathing report on the firm that described Burford as being "arguably insolvent".
Muddy Waters accused Burford of manipulating its returns on investment capital and internal rate of return, also labelling the litigation finance firm as a "a poor business masquerading as a great one".
In response, Burford said the claim was "baseless", adding that "presumably, the reason 'arguably' is inserted is because Muddy Waters knows they would lose a lawsuit if they accused Burford of insolvency, and they know they cannot support such a claim".
Burford Capital (BUR)