Marcus (NYSE:MCS) Stock Price Down 4.7% - Here's Why

Key Points

• Marcus shares fell 4.7% to $27.35 in unusually light trading, with volume down 94% from the average daily level.
• Recent analyst opinions remain generally positive, with a “Moderate Buy” consensus and an average price target of $32.25, although B. Riley downgraded the stock to “neutral.”
• The company reported quarterly earnings and revenue above expectations and raised its quarterly dividend to $0.09, but director Diane M. Gershowitz recently sold 50,000 shares worth about $1.38 million.

Marcus Corporation (The) (NYSE:MCS - Get Free Report) fell 4.7% during trading on Thursday. The stock traded as low as $27.41 and last traded at $27.35. 12,660 shares changed hands during trading, a decline of 94% from the average daily volume of 205,763 shares. The stock had previously closed at $28.70.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on MCS. Zacks Research raised Marcus from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 30th. Benchmark boosted their price target on shares of Marcus from $22.00 to $33.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Wall Street Zen raised shares of Marcus from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. B. Riley Financial cut shares of Marcus from a "buy" rating to a "neutral" rating and lifted their price objective for the company from $27.00 to $29.00 in a report on Friday, July 31st. Finally, Barrington Research set a $33.00 target price on shares of Marcus in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $32.25.

Marcus Stock Performance

The company has a market cap of $822.11 million, a PE ratio of 37.60 and a beta of 0.52. The company's fifty day moving average price is $28.35 and its 200 day moving average price is $22.79. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.44 and a quick ratio of 0.44.

Marcus (NYSE:MCS - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.51 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.16. Marcus had a return on equity of 2.67% and a net margin of 2.87%.The business had revenue of $231.74 million for the quarter, compared to analyst estimates of $217.72 million. On average, equities research analysts predict that Marcus Corporation will post 0.81 earnings per share for the current year.

Marcus Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, August 25th were issued a $0.09 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This is a positive change from Marcus's previous quarterly dividend of $0.08. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.4%. Marcus's payout ratio is currently 50.70%.

Insider Transactions at Marcus

In related news, Director Diane M. Gershowitz sold 50,000 shares of the stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $27.61, for a total value of $1,380,500.00. Following the sale, the director owned 125,617 shares in the company, valued at approximately $3,468,285.37. This trade represents a 28.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 16.53% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Saber Capital Managment LLC bought a new stake in shares of Marcus in the 4th quarter worth approximately $7,836,000. Bank of New York Mellon Corp bought a new stake in shares of Marcus in the 2nd quarter valued at about $6,481,000. Heartland Advisors Inc. lifted its stake in shares of Marcus by 24.4% in the 1st quarter. Heartland Advisors Inc. now owns 255,000 shares of the company's stock valued at $4,378,000 after acquiring an additional 50,000 shares during the last quarter. Empowered Funds LLC boosted its holdings in Marcus by 2.8% during the 1st quarter. Empowered Funds LLC now owns 181,793 shares of the company's stock valued at $3,121,000 after acquiring an additional 5,023 shares during the period. Finally, Quantinno Capital Management LP boosted its holdings in Marcus by 8.5% during the 1st quarter. Quantinno Capital Management LP now owns 102,006 shares of the company's stock valued at $1,751,000 after acquiring an additional 8,024 shares during the period. Institutional investors own 81.57% of the company's stock.

Marcus Company Profile

Marcus Corporation is a diversified hospitality and entertainment company headquartered in Milwaukee, Wisconsin. Founded in 1935, the company operates through two primary business segments: movie theatres and hotels and resorts.

Through Marcus Theatres, the company owns and operates cinemas under the Marcus Theatres and Movie Tavern brands, offering first-run films, premium viewing experiences, food and beverage service, and other entertainment amenities. Its theatres are located primarily in the Midwestern United States, with additional locations in other regions.

Through Marcus Hotels & Resorts, the company owns, manages, or develops hotels, resorts, and related hospitality properties.

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