Marcus (NYSE:MCS) Stock Price Up 18.9% Following Earnings Beat

Key Points

• Marcus shares surged 18.9% to about $29.69 after the company reported quarterly earnings of $0.51 per share, beating estimates of $0.34, while revenue of $231.74 million exceeded forecasts of $217.72 million.
• The company paid a quarterly dividend of $0.08 per share, equivalent to an annualized $0.32 dividend and a 1.1% yield; its payout ratio stands at 74.42%.
• Analyst sentiment is broadly positive, with the stock holding an average “Buy” rating and a $24.25 average price target, while institutional investors own 81.57% of outstanding shares.

Shares of Marcus Corporation (The) (NYSE:MCS - Get Free Report) shot up 18.9% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $29.42 and last traded at $29.6850. Approximately 415,345 shares were traded during mid-day trading, an increase of 129% from the average session volume of 181,208 shares. The stock had previously closed at $24.96.

The company reported $0.51 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.17. The business had revenue of $231.74 million during the quarter, compared to analyst estimates of $217.72 million. Marcus had a return on equity of 0.79% and a net margin of 1.85%.

Marcus Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a dividend of $0.08 per share. The ex-dividend date was Monday, June 1st. This represents a $0.32 dividend on an annualized basis and a yield of 1.1%. Marcus's payout ratio is currently 74.42%.

Analyst Upgrades and Downgrades

MCS has been the topic of a number of research reports. B. Riley Financial raised their price target on Marcus from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. Zacks Research raised shares of Marcus from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 30th. Wedbush boosted their target price on shares of Marcus from $22.00 to $23.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. Barrington Research reissued an "outperform" rating and set a $25.00 price objective on shares of Marcus in a research report on Monday, May 4th. Finally, Weiss Ratings lowered Marcus from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $24.25.

Institutional Trading of Marcus

Institutional investors and hedge funds have recently bought and sold shares of the stock. Saber Capital Managment LLC bought a new stake in shares of Marcus in the fourth quarter worth about $7,836,000. Pacific Ridge Capital Partners LLC purchased a new position in shares of Marcus in the 4th quarter worth $2,594,000. Gamco Investors INC. ET AL grew its stake in shares of Marcus by 12.3% in the 4th quarter. Gamco Investors INC. ET AL now owns 915,835 shares of the company's stock worth $14,205,000 after buying an additional 100,480 shares in the last quarter. Bastion Asset Management Inc. increased its holdings in shares of Marcus by 70.1% in the 4th quarter. Bastion Asset Management Inc. now owns 374,612 shares of the company's stock worth $5,716,000 after buying an additional 154,439 shares during the last quarter. Finally, KLCM Advisors Inc. increased its holdings in shares of Marcus by 7.0% in the 4th quarter. KLCM Advisors Inc. now owns 1,085,909 shares of the company's stock worth $16,842,000 after buying an additional 70,958 shares during the last quarter. 81.57% of the stock is currently owned by institutional investors.

Marcus Price Performance

The firm's 50-day moving average price is $22.07 and its 200-day moving average price is $18.72. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $910.22 million, a PE ratio of 68.97, a PEG ratio of 3.12 and a beta of 0.51.

Marcus Company Profile

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts.

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