Marston’s (LON:MARS) Shares Down 12.8% – Should You Sell?

Shares of Marston’s PLC (LON:MARS) were down 12.8% during trading on Wednesday . The company traded as low as GBX 57.45 and last traded at GBX 60.06. Approximately 66,173,086 shares traded hands during trading, an increase of 1,005% from the average daily volume of 5,987,450 shares. The stock had previously closed at GBX 68.90.

Trending Headlines about Marston’s

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

MARS has been the topic of a number of research analyst reports. 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. Peel Hunt reiterated a “buy” rating and issued a GBX 75 price target 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 research report on Wednesday. Finally, Panmure Gordon reissued a “buy” rating and issued a GBX 80 price objective on shares of Marston’s in a research report on Tuesday, November 25th. Four research analysts have rated the stock with a Buy rating, According to MarketBeat, Marston’s has a consensus rating of “Buy” and an average target price of GBX 80.

Marston’s Stock Down 13.2%

The company has a market cap of £378.18 million, a price-to-earnings ratio of 5.39, a price-to-earnings-growth 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. The business has a 50-day simple moving average of GBX 60.37 and a 200-day simple moving average of GBX 48.19.

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

Insider Activity

In related news, insider Justin Platt purchased 158,309 shares of the business’s stock in a transaction that occurred on Wednesday, December 24th. The shares were purchased 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.