Safestore (LON:SAFE) Reaches New 1-Year Low - Is It Time to Sell?

Safestore Holdings Plc (LON:SAFE) has hit a new 52-week low during trading on Monday. The stock price fell to GBX 578.50 ($7.15) before ending the day at GBX 600 ($7.41), with a trading volume of 559,367 shares. The previous closing price was GBX 601.50 ($7.43).

Current Stock Performance

Safestore's share price has decreased by 0.2%. The company's 50-day moving average stands at GBX 648.36, while the 200-day moving average is GBX 772.17. Safestore has 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, its price-to-earnings (PE) ratio is at 495.87, alongside a price-to-earnings-growth (PEG) ratio of 2.05 and a beta of 0.86, indicating lower volatility compared to the market.

On January 16th, the company announced its earnings results, reporting an earnings per share (EPS) of GBX 92.40 ($1.14) for the quarter. The net margin was notably high at 118.32%, with a return on equity of 13.58%. Analysts predict that for the current fiscal year, Safestore Holdings Plc will post an EPS of approximately 42.69.

Dividend Announcement

Additionally, Safestore has declared an increase in its dividend, set to be paid on April 15th. Shareholders registered by March 13th will receive a dividend of GBX 20.40 ($0.25), up from the previous amount of $10.00. This yields 3.42%. The ex-dividend date is March 13th, and the company's dividend payout ratio (DPR) currently stands at a staggering 2,479.34%, indicating a significant commitment to returning value to shareholders.

Insider Activity

In related news, insider Avis Darzins purchased 1,581 shares of Safestore stock on January 16th for an average price of GBX 628 ($7.76) per share, totaling approximately £9,928.68 ($12,269.75). Currently, corporate insiders own about 2.77% of the stock.

Company Overview

Safestore is recognized as the largest self-storage operator in the UK, boasting 190 stores as of October 31, 2023. This includes 133 wholly owned stores in the UK, with a significant presence in London and the South East, as well as in key metropolitan areas including Manchester, Birmingham, and Glasgow. The company also operates 29 wholly owned stores in the Paris region, 11 in Spain, 11 in the Netherlands, and 6 in Belgium.

Looking Ahead

Investors are now left to consider whether this downward trend signifies a necessary exit from their Safestore investments or if the stock will rebound in the future. Analysts currently maintain a "Hold" rating for the shares, and some suggest looking at better-performing companies to invest in.

Safestore, Stock, Dividend