Marston’s (LON:MARS) Shares Down 13.4% – Here’s What Happened

Shares of Marston’s PLC (LON:MARS) dropped 13.4% during mid-day trading on Thursday . The company traded as low as GBX 57.45 and last traded at GBX 59.70. Approximately 107,206,734 shares changed hands 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: 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

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Panmure Gordon restated a “buy” rating and issued a GBX 80 price target on shares of Marston’s in a report on Tuesday, November 25th. Peel Hunt reiterated a “buy” rating and issued a GBX 75 price objective on shares of Marston’s in a report 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 company an “overweight” rating in a research report on Tuesday, December 2nd. Finally, Shore Capital reiterated a “buy” rating on shares of Marston’s in a research note on Wednesday. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, Marston’s currently has an average rating of “Buy” and a consensus price target of GBX 80.

Marston’s Stock Performance

The company’s fifty day simple moving average is GBX 60.61 and its two-hundred day simple moving average is GBX 48.28. The company has a market capitalization 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.

Marston’s (LON:MARS) last issued its earnings results 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%. Equities research analysts predict that Marston’s PLC will post 8.364486 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Justin Platt bought 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, with a total value of £93,402.31. 1.32% of the stock is currently owned by corporate 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.