Safestore (LON:SAFE) Hits New 1-Year Low - Time to Sell?

Safestore Holdings Plc (LON:SAFE) recently experienced a significant dip in its share price, reaching a new 52-week low during trading on Monday. The stock fell to GBX 578.50 ($7.15) at its lowest point and was last seen trading at GBX 600 ($7.41). This downturn was accompanied by a trading volume of 559,367 shares, a notable increase from its previous closing price of GBX 601.50 ($7.43).

Safestore Stock Down 0.2%

As of now, Safestore's shares reflect a marginal decrease of 0.2%. The company has a 50-day moving average price of GBX 648.36 and a 200-day moving average of GBX 772.17. In terms of financial health, Safestore's debt-to-equity ratio stands at 42.94. The quick ratio is 0.90 while the current ratio is 0.42. The company's market capitalization is approximately £1.31 billion, with a PE ratio of 495.87 and a price-to-earnings-growth ratio of 2.05. Additionally, the stock has a beta of 0.86, indicating lower volatility compared to the market.

Safestore announced its latest earnings on January 16, revealing an earnings-per-share (EPS) of GBX 92.40 ($1.14) for the quarter. The company also demonstrated robust financial metrics, boasting a net margin of 118.32% and a return on equity of 13.58%. Analysts predict that Safestore Holdings Plc will report an EPS of approximately 42.69 for the current fiscal year.

Safestore Increases Dividend

In a positive move for shareholders, Safestore has also disclosed an increase in its dividend. The upcoming dividend of GBX 20.40 ($0.25) is scheduled for payment on April 15, with the record date set for March 13. This new dividend reflects an increase from the previous payout of $10.00, resulting in a yield of 3.42%. However, it’s notable that Safestore's current dividend payout ratio (DPR) is exceptionally high at 2,479.34%, suggesting a significant portion of earnings is being returned to shareholders.

Insider Buying and Selling at Safestore

Interestingly, there has been some activity from insiders regarding the company's stock. On January 16, Avis Darzins, a company insider, bought 1,581 shares at an average price of GBX 628 ($7.76) each, totaling approximately £9,928.68 ($12,269.75). Currently, corporate insiders own about 2.77% of the stock.

About Safestore

Safestore Holdings Plc is recognized as the largest self-storage group in the UK, managing a total of 190 stores as of October 31, 2023. This impressive count includes 133 wholly owned locations throughout the UK, with 73 situated in London and the South East. Additional stores are located in key cities such as Manchester, Birmingham, Glasgow, and Edinburgh, among others. Furthermore, Safestore operates 29 stores in the Paris region, 11 in Spain, 11 in the Netherlands, and 6 in Belgium.

Conclusion

The recent drop in Safestore's share price raises questions for current investors. With a mix of high dividend yields and notable insider buying, it could be time for investors to assess whether to hold or sell their shares. Monitoring upcoming financial reports and market trends will be crucial in making informed decisions moving forward.

Safestore, Stocks, Dividend