Marston’s (LON:MARS) Shares Down 13.4% – Should You Sell?

Marston’s PLC (LON:MARS) traded down 13.4% during mid-day trading on Wednesday . The company traded as low as GBX 57.45 and last traded at GBX 59.70. 107,206,734 shares traded hands during trading, an increase of 1,216% from the average session volume of 8,147,116 shares. The stock had previously closed at GBX 68.90.

More Marston’s News

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

• Positive Sentiment: Strong festive trading: Marston’s reported like‑for‑like sales growth of ~4% over the holiday period, which management cites as evidence of recovery in footfall and consumer demand. Article Title
• Positive Sentiment: Roll‑out of new pub formats accelerating: Company says an accelerated roll‑out programme for updated pub formats is driving further trading momentum and improved site performance. Article Title
• Positive Sentiment: Operator recruitment and retention push: Marston’s launched an industry‑first induction programme for pub partners to attract and retain operators — a structural move to support roll‑out and margins over time. Article Title
• Positive Sentiment: Analyst support: Shore Capital reaffirmed a “buy” rating on Marston’s, which provides broker backing for the recovery story. Article Title
• Neutral Sentiment: Debate over activist investor view: Coverage arguing against a short‑term activist thesis may reduce takeover/reshuffle headlines but has unclear near‑term share impact. Article Title
• Negative Sentiment: Market reaction to quarterly sales: Reports say quarterly sales were flat, prompting a sharp intraday sell‑off (heavy volume) as investors appeared disappointed by the underlying quarterly print despite the strong festive LFL comparatives. Article Title

Wall Street Analyst Weigh In

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

Marston’s Price Performance

The company has a debt-to-equity ratio of 198.96, a quick ratio of 0.23 and a current ratio of 0.36. The company has a 50-day simple moving average of GBX 60.37 and a 200-day simple moving average of GBX 48.19. The company has a market cap of £377.55 million, a price-to-earnings ratio of 5.38, a PEG ratio of -0.16 and a beta of 1.68.

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

Insider Buying and Selling at Marston’s

In related news, insider Justin Platt purchased 158,309 shares of the firm’s stock in a transaction on Wednesday, December 24th. The shares were bought at an average cost of GBX 59 per share, for a total transaction of £93,402.31. Insiders own 1.32% of the company’s stock.

About Marston’s

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.