Mitchells & Butlers (LON:MAB) Share Price Crosses Below 200-Day Moving Average - What's Next?

Key Points

• Mitchells & Butlers shares slipped below their 200-day moving average during Wednesday trading, touching GBX 260.50 before closing around GBX 265. The move may signal near-term technical weakness for the stock.
• Analysts remain broadly constructive on the company, with five Buy ratings and two Holds. However, the consensus price target of GBX 485 sits well above the current share price, and some firms have much higher targets, including Berenberg’s GBX 1,150.
• The company recently reported earnings of GBX 17.40 per share and revenue of GBX 149 billion, while insiders have also been buying shares. Insider Amanda Brown purchased 30,000 shares at GBX 236, and insiders now own about 32.08% of the company.

Mitchells & Butlers plc (LON:MAB - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 262.27 and traded as low as GBX 260.50. Mitchells & Butlers shares last traded at GBX 265, with a volume of 989,826 shares traded.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on MAB shares. Jefferies Financial Group reiterated a "buy" rating and set a GBX 355 price objective on shares of Mitchells & Butlers in a research report on Thursday, May 21st. Berenberg Bank restated a "buy" rating and set a GBX 1,150 price objective on shares of Mitchells & Butlers in a research report on Monday, March 30th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Mitchells & Butlers presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 485.

Mitchells & Butlers Stock Up 0.4%

The firm has a market cap of £1.57 billion, a PE ratio of 8.66, a P/E/G ratio of 2.76 and a beta of 1.28. The company has a current ratio of 0.48, a quick ratio of 0.46 and a debt-to-equity ratio of 47.97. The business's 50-day simple moving average is GBX 245.85 and its 200 day simple moving average is GBX 262.27.

Mitchells & Butlers (LON:MAB - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported GBX 17.40 earnings per share for the quarter. The company had revenue of GBX 149 billion during the quarter. Mitchells & Butlers had a return on equity of 6.41% and a net margin of 6.70%. As a group, equities research analysts expect that Mitchells & Butlers plc will post 26.6341463 earnings per share for the current year.

Insider Activity at Mitchells & Butlers

In other news, insider Amanda Brown bought 30,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was bought at an average price of GBX 236 per share, with a total value of £70,800. In the last three months, insiders have purchased 30,282 shares of company stock worth $7,148,891. Insiders own 32.08% of the company's stock.

About Mitchells & Butlers

Mitchells & Butlers is a leading operator of managed restaurants and pubs in the UK. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE 250. Its restaurants and pubs have some of the highest average sales and profits per site in the industry and it operates the best portfolio of brands in the UK.

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