Marston’s (LON:MARS) Trading Down 13.4% – Here’s Why

Marston’s PLC (LON:MARS)’s stock price dropped 13.4% on Wednesday . The stock traded as low as GBX 57.45 and last traded at GBX 59.70. Approximately 107,206,734 shares were traded during mid-day trading, an increase of 1,216% from the average daily volume of 8,147,116 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 reported a strong Christmas/festive trading period, with management citing like‑for‑like sales growth of about 4% and improved holiday footfall — supports near‑term recovery in trading momentum. Read More.
• Positive Sentiment: Company says accelerated roll‑out of new pub formats is driving additional trading momentum, suggesting scalable revenue gains as conversion continues. Read More.
• Positive Sentiment: Introduced an industry‑first induction programme for pub partners to attract and retain operators — a structural initiative that could improve operator quality and franchise economics over time. Read More.
• Positive Sentiment: Broker Shore Capital reaffirmed a “buy” rating on MARS, providing third‑party support for the stock’s recovery narrative. Read More.
• Neutral Sentiment: Opinion pieces and analysis (including coverage of activist investor debate) add context but don’t change the near‑term headline drivers — keep an eye on whether activists press for faster asset strategies. Read More.
• Negative Sentiment: Market reaction turned negative after an update showing quarterly sales were broadly flat, prompting heavy selling and reports of a sharp intraday plunge — suggests investors were expecting stronger topline improvement or clearer margin guidance. Read More.
• Negative Sentiment: Multiple outlets noted that shares slid despite the upbeat festive numbers, indicating short‑term sensitivity to any sign that recovery is uneven or that profitability and cash/debt metrics remain a concern. Read More.

Analysts Set New Price Targets

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

Marston’s Price Performance

The company has a fifty day simple moving average of GBX 60.37 and a 200 day simple moving average of GBX 48.19. The stock has a market capitalization of £377.55 million, a price-to-earnings ratio of 5.38, a P/E/G ratio of -0.16 and a beta of 1.68. The company has a debt-to-equity ratio of 198.96, a quick ratio of 0.23 and a current ratio of 0.36.

Marston’s (LON:MARS) last posted its quarterly earnings data 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%. Equities research analysts forecast that Marston’s PLC will post 8.364486 EPS for the current fiscal year.

Insider Buying and Selling at Marston’s

In other news, insider Justin Platt bought 158,309 shares of the stock in a transaction that occurred on Wednesday, December 24th. The stock was acquired 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.

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.