Marston’s (LON:MARS) Shares Down 11.9% – Here’s Why

Marston’s PLC (LON:MARS)’s stock price traded down 11.9% during trading on Wednesday . The stock traded as low as GBX 57.45 and last traded at GBX 60.70. 64,611,738 shares were traded during mid-day trading, an increase of 994% from the average session volume of 5,905,274 shares. The stock had previously closed at GBX 68.90.

Marston’s News Summary

Here are the key news stories impacting Marston’s this week:

• Positive Sentiment: Group like?for?like sales rose about 4% over the festive period, driven by holiday footfall — a clear demand signal for the pub estate. UK’s Marston’s sales rise 4%, boosted by holiday footfall
• Positive Sentiment: Company reported “strong festive trading” with c.4.0% like?for?like growth, reinforcing the win from seasonal trading and consumer demand. Marston’s reports strong festive trading with 4.0% like-for-like sales growth
• Positive Sentiment: Multiple outlets label this a “bumper Christmas” with group sales up ~4%, supporting revenue momentum heading into the new financial period. Marston’s cheers bumper Christmas as sales rise 4%
• Positive Sentiment: New pub formats are delivering results, suggesting successful execution of the roll?out strategy and potential for improving revenue per site. Marston’s raises a glass to festive performance as new pub formats deliver results
• Positive Sentiment: Initiative to introduce an industry?first induction programme for pub partners aims to attract, develop and retain operators — a potential margin/operational benefit over time. Marston’s introduces industry first induction programme for pub partners
• Neutral Sentiment: An opinion piece argues the activist investor is wrong, defending management strategy — this may reduce activist tail?risk but is unlikely to move the stock materially by itself. Why Marston’s activist investor is wrong
• Negative Sentiment: Despite the sales beat, at least one report notes shares slipped — suggesting investors remain worried about margins, high leverage and whether the sales growth will translate into improved profitability. Marston’s sales boosted by Christmas trading but shares slip

Analysts Set New Price Targets

Several brokerages have issued reports on MARS. Peel Hunt reissued a “buy” rating and set a GBX 75 target price on shares of Marston’s in a research note on Tuesday, November 25th. Panmure Gordon reissued a “buy” rating and issued a GBX 80 price objective on shares of Marston’s in a research note on Tuesday, November 25th. Shore Capital restated a “buy” rating on shares of Marston’s in a research report on Wednesday. Finally, JPMorgan Chase & Co. lifted their target price on Marston’s from GBX 78 to GBX 85 and gave the company an “overweight” rating in a research note on Tuesday, December 2nd. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, Marston’s has an average rating of “Buy” and a consensus price target of GBX 80.

Marston’s Stock Performance

The firm has a 50-day simple moving average of GBX 60.37 and a two-hundred day simple moving average of GBX 48.19. The company has a current ratio of 0.36, a quick ratio of 0.23 and a debt-to-equity ratio of 198.96. The company has a market capitalization of £383.10 million, a price-to-earnings ratio of 5.46, a price-to-earnings-growth ratio of -0.16 and a beta of 1.68.

Marston’s (LON:MARS) last announced its quarterly earnings results on Monday, December 15th. The company reported GBX 8.50 EPS for the quarter. Marston’s had a negative return on equity of 2.72% and a negative net margin of 1.91%. As a group, sell-side analysts forecast that Marston’s PLC will post 8.364486 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Justin Platt purchased 158,309 shares of Marston’s stock in a transaction on Wednesday, December 24th. The stock was bought at an average price of GBX 59 per share, with a total value of £93,402.31. 1.32% of the stock is currently owned by company insiders.

Marston’s Company Profile

Marston’s PLC operates managed, franchised, tenanted, partnership, and leased pubs in the United Kingdom. It is also involved in the property management; telecommunications; and insurance businesses. The company was formerly known as The Wolverhampton & Dudley Breweries PLC and changed its name to Marston’s PLC in January 2007. The company was founded in 1834 and is based in Wolverhampton, the United Kingdom.