Marcus Corporation (The) (NYSE:MCS) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analyst sentiment is moderately bullish: Six brokerages rate Marcus a “Moderate Buy,” with four buys and two holds. The average 12-month price target is $32.25, above the reported share price of $27.94.
• Marcus exceeded quarterly expectations, reporting earnings per share of $0.51 versus a $0.35 consensus estimate and revenue of $231.74 million versus $217.72 million expected.
• The company raised its quarterly dividend to $0.09 per share, implying a $0.36 annualized payout and a 1.3% yield. Institutional investors own 81.57% of the stock, while a director recently sold 50,000 shares.

Marcus Corporation (The) (NYSE:MCS - Get Free Report) has earned an average recommendation of "Moderate Buy" from the six ratings firms that are currently covering the firm, MarketBeat reports. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $32.25.

Several equities research analysts recently commented on MCS shares. Barrington Research set a $33.00 target price on Marcus in a report on Monday, August 3rd. Wedbush upped their target price on Marcus from $23.00 to $34.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Weiss Ratings raised Marcus from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Benchmark lifted their price target on Marcus from $22.00 to $33.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Finally, B. Riley Financial reissued a "neutral" rating on shares of Marcus in a research note on Monday, October 19th.

Marcus Stock Down 1.3%

Marcus stock opened at $27.94 on Friday. The stock has a market cap of $861.35 million, a price-to-earnings ratio of 39.35 and a beta of 0.58. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.34. The company's 50-day moving average price is $28.12 and its two-hundred day moving average price is $24.06. Marcus has a 52 week low of $12.88 and a 52 week high of $32.42.

Marcus (NYSE:MCS - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.51 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $0.16. The company had revenue of $231.74 million during the quarter, compared to analyst estimates of $217.72 million. Marcus had a net margin of 2.87% and a return on equity of 2.67%. On average, analysts expect that Marcus will post 0.83 EPS for the current fiscal year.

Marcus Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, August 25th were paid a dividend of $0.09 per share. This is an increase from Marcus's previous quarterly dividend of $0.08. This represents a $0.36 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend was Tuesday, August 25th. Marcus's dividend payout ratio (DPR) is 50.70%.

Insider Transactions at Marcus

In related news, Director Diane M. Gershowitz sold 50,000 shares of Marcus stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $27.61, for a total transaction of $1,380,500.00. Following the transaction, the director directly owned 125,617 shares of the company's stock, valued at $3,468,285.37. The trade was a 28.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 16.53% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Marcus

Institutional investors and hedge funds have recently bought and sold shares of the business. Financial Management Professionals Inc. bought a new position in shares of Marcus during the 3rd quarter valued at about $28,000. USA Financial Formulas bought a new stake in shares of Marcus in the 3rd quarter worth approximately $50,000. WINTON GROUP Ltd bought a new stake in shares of Marcus in the 2nd quarter worth approximately $290,000. Susquehanna International Group LLP raised its holdings in shares of Marcus by 183.1% in the 2nd quarter. Susquehanna International Group LLP now owns 47,094 shares of the company's stock worth $1,105,000 after purchasing an additional 30,457 shares in the last quarter. Finally, Lazard Asset Management LLC acquired a new stake in Marcus during the first quarter valued at approximately $844,000. 81.57% of the stock is owned by institutional investors and hedge funds.

Marcus Company Profile

Marcus Corporation NYSE: MCS is an entertainment and hospitality company headquartered in Milwaukee, Wisconsin. Its principal businesses are conducted through Marcus Theatres and Marcus Hotels & Resorts.

Marcus Theatres operates movie theaters in the United States, primarily across the Midwest, under brands that include Marcus Theatres and Movie Tavern. Its theater operations offer film screenings, reserved seating, premium viewing formats, food and beverage service, and other cinema-related experiences.

Marcus Hotels & Resorts owns, manages, or operates hotels, resorts, restaurants, and related hospitality facilities in the United States.

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