Zacks Research Upgrades Marcus (NYSE:MCS) to "Hold"

Key Points

• Marcus (NYSE:MCS) has been upgraded from a "strong sell" rating to a "hold" rating by Zacks Research.
• The company reported a quarterly earnings per share (EPS) of $0.23, beating analysts' expectations of $0.19.
• Senior analysts have given Marcus a consensus rating of "Buy" with a target price of $24.50.

Zacks Research upgraded shares of Marcus (NYSE:MCS - Free Report) from a strong sell rating to a hold rating in a report published on Thursday morning,Zacks.com reports.

A number of other equities research analysts have also weighed in on MCS. Wedbush started coverage on Marcus in a research note on Friday, July 18th. They issued an "outperform" rating and a $24.00 target price for the company. Barrington Research reiterated an "outperform" rating and set a $25.00 target price on shares of Marcus in a report on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $24.50.

Marcus Price Performance

MCS traded down $0.41 on Thursday, reaching $15.69. The company had a trading volume of 419,447 shares, compared to its average volume of 214,718. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.39 and a current ratio of 0.39. Marcus has a 52-week low of $14.13 and a 52-week high of $23.16. The company has a market cap of $491.25 million, a price-to-earnings ratio of 34.87, a P/E/G ratio of 2.87 and a beta of 1.22. The business has a 50 day simple moving average of $15.92 and a 200 day simple moving average of $16.53.

Marcus (NYSE:MCS - Get Free Report) last issued its quarterly earnings results on Friday, August 1st. The company reported $0.23 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.04. The business had revenue of $206.04 million for the quarter, compared to analysts' expectations of $192.79 million. Marcus had a net margin of 1.91% and a return on equity of 4.28%. As a group, sell-side analysts anticipate that Marcus will post 0.36 EPS for the current year.

Marcus Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Monday, August 25th were issued a $0.08 dividend. The ex-dividend date was Monday, August 25th. This represents a $0.32 annualized dividend and a dividend yield of 2.0%. This is a positive change from Marcus's previous quarterly dividend of $0.07. Marcus's dividend payout ratio (DPR) is currently 71.11%.

Hedge Funds Weigh In On Marcus

A number of large investors have recently made changes to their positions in MCS. Bank of America Corp DE raised its position in shares of Marcus by 6.6% in the 4th quarter. Bank of America Corp DE now owns 75,285 shares of the company's stock valued at $1,619,000 after purchasing an additional 4,669 shares during the last quarter. Janus Henderson Group PLC purchased a new stake in shares of Marcus in the fourth quarter worth about $206,000. Lazard Asset Management LLC grew its stake in shares of Marcus by 2,908.9% during the 4th quarter. Lazard Asset Management LLC now owns 2,377 shares of the company's stock worth $51,000 after purchasing an additional 2,298 shares during the period. Millennium Management LLC increased its holdings in Marcus by 28.7% in the fourth quarter. Millennium Management LLC now owns 353,516 shares of the company's stock valued at $7,601,000 after buying an additional 78,932 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in shares of Marcus by 1,529.9% in the 1st quarter. GAMMA Investing LLC now owns 69,597 shares of the company's stock valued at $1,162,000 after purchasing an additional 65,327 shares in the last quarter. 81.57% of the stock is owned by institutional investors and hedge funds.

About Marcus

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.