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

Marston’s PLC (LON:MARS) was 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. Approximately 107,206,734 shares changed hands during 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.

Key Headlines Impacting Marston’s

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

• Positive Sentiment: Company reported a stronger Christmas performance and c.4.0% like‑for‑like sales growth, supporting recovery in trading momentum. Marston’s reports strong festive trading with 4.0% like-for-like sales growth
• Positive Sentiment: Management says an accelerated roll‑out of new pub formats is delivering further trading momentum, which supports medium‑term growth prospects. Marston’s ‘accelerated roll-out programme driving further trading momentum’
• Positive Sentiment: New industry‑first induction programme for pub partners aims to attract and retain operators — a structural move to improve operator quality and execution. Marston’s introduces industry first induction programme for pub partners
• Neutral Sentiment: Shore Capital reaffirmed a “buy” rating on the stock, providing an independent positive analyst signal but not enough to prevent heavy selling today. Broker Ratings
• Negative Sentiment: Despite the upbeat festive read, markets focused on a mixed/flat quarterly sales picture in the update; several outlets report a sharp intraday sell‑off (shares plunged). That disconnect (good seasonal LFL but flat quarterly context) triggered heavy selling. Marston’s shares plunge 16% on flat quarterly sales
• Negative Sentiment: Investors are also likely concerned by the balance‑sheet and liquidity profile (high debt-to-equity and low current/quick ratios), which amplifies downside risk if trading disappoints. Market headlines note shares fell sharply despite the festive sales beat. Marston’s reports strong festive sales but shares slide

Analyst Upgrades and Downgrades

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

Marston’s Trading Down 0.7%

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 business has a 50 day moving average of GBX 60.61 and a 200-day moving average of GBX 48.28. The stock has a market cap of £375.02 million, a PE ratio of 5.34, a price-to-earnings-growth ratio of -0.16 and a beta of 1.68.

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

Insider Transactions at Marston’s

In related news, insider Justin Platt acquired 158,309 shares of Marston’s stock in a transaction on Wednesday, December 24th. The shares were bought at an average price of GBX 59 per share, for a total transaction of £93,402.31. Company 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.