Patrick Coveney Divests 136,379 Shares of SSP Group Stock

Patrick Coveney, an insider at SSP Group plc, sold 136,379 shares of the company’s stock on December 8, 2023. The shares were sold at an average price of GBX 174, resulting in a total transaction value of approximately £237,299.46. This sale follows a series of recent trades by Coveney, reflecting ongoing activity within the company.

On Friday, shares of SSP Group opened at GBX 181.90, representing a 2.3% increase. The company’s stock has fluctuated within a 52-week range, recording a low of GBX 134.10 and a high of GBX 193.77. SSP Group holds a market capitalization of about £1.44 billion, with a price-to-earnings ratio of -60.63 and a price-to-earnings-growth ratio of -0.77. The company’s beta stands at 1.88, indicating a higher volatility compared to the market.

SSP Group’s financial metrics reveal a quick ratio of 0.66, a current ratio of 0.44, and a debt-to-equity ratio of 852.29, suggesting challenges in liquidity and high leverage. Notably, on October 9, 2023, the board approved a stock buyback plan, allowing the company to repurchase shares through open market purchases, a move often viewed as a signal that the board believes the stock is currently undervalued.

Market Analysts Provide Mixed Outlook

Several analysts have weighed in on SSP Group’s stock performance. Shore Capital reaffirmed a “house stock” rating in a research note dated December 4, 2023. Meanwhile, JPMorgan Chase & Co. adjusted their target price from GBX 190 to GBX 170, maintaining a “neutral” rating for the company.

Peel Hunt retained a “buy” rating but set a higher price target of GBX 275 on October 10, 2023. In contrast, Deutsche Bank Aktiengesellschaft reduced its target from GBX 285 to GBX 262, also assigning a “buy” rating. Additionally, Berenberg Bank reiterated a “buy” rating with a price target set at GBX 190 on October 14, 2023.

As it stands, four analysts rate SSP Group’s stock as a buy, one as a hold, and one as a sell. According to MarketBeat.com, the consensus rating remains a “Moderate Buy,” with an average price target of GBX 229.50.

About SSP Group

SSP Group is a prominent operator of food and beverage outlets located in travel environments globally. The company employs around 37,000 colleagues across more than 600 locations in 36 countries. It operates a diverse range of establishments, including sit-down restaurants, quick-service eateries, cafes, lounges, and convenience stores, primarily situated in airports and train stations. SSP Group boasts a portfolio exceeding 550 brands, comprising international, national, and local names.

As the company continues to navigate the complexities of the market, stakeholders and investors will be closely monitoring its financial strategies and stock performance in the coming months.