Safestore (LON:SAFE) Reaches New 52-Week Low - Is It Time to Sell?

Safestore Holdings Plc (LON:SAFE) reached a new 52-week low during trading on Monday, dropping as low as GBX 578.50 ($7.15) before closing at GBX 600 ($7.41). The trading volume for the day was 559,367 shares, and the stock had previously closed at GBX 601.50 ($7.43).

Current Stock Performance

Recently, Safestore's stock slipped by 0.2%. The stock's 50-day moving average stands at GBX 648.36, while the 200-day moving average is at GBX 772.17. Financial metrics include a debt-to-equity ratio of 42.94, a quick ratio of 0.90, and a current ratio of 0.42. With a market capitalization of £1.31 billion, Safestore shows a price-to-earnings (PE) ratio of 495.87 and a price-to-earnings-growth (PEG) ratio of 2.05. The stock’s beta is recorded at 0.86, reflecting its lower volatility compared to the broader market.

Recent Financial Results

Safestore reported its latest earnings results on January 16th, revealing an earnings per share (EPS) of GBX 92.40 ($1.14) for the quarter. The company has demonstrated a remarkable net margin of 118.32% and a return on equity of 13.58%. Analysts project that Safestore Holdings Plc will achieve an EPS of approximately 42.69 for the current fiscal year.

Dividend Increase Announcement

In recent news, Safestore declared an increase in its dividend, set to be paid on April 15th. Stockholders on record by March 13th will receive a dividend of GBX 20.40 ($0.25), raising it from the previous dividend of GBX 10.00. This increase reflects a yield of 3.42%, with the ex-dividend date also falling on March 13th. The dividend payout ratio currently stands at an astonishing 2,479.34%.

Insider Transactions

Additional insights come from insider trading, where Avis Darzins acquired 1,581 shares of Safestore on January 16th at an average cost of GBX 628 ($7.76) per share, totaling around £9,928.68 ($12,269.75). Currently, corporate insiders own approximately 2.77% of the company's shares.

About Safestore Holdings Plc

Safestore is recognized as the largest self-storage company in the UK, with 190 outlets as of October 31, 2023. This includes 133 wholly owned sites in the UK, with many located in London and the South East, along with several locations in major cities including Manchester, Birmingham, and Liverpool. Additionally, Safestore has 29 wholly owned locations in the Paris region, 11 in Spain, 11 in the Netherlands, and 6 in Belgium.

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