J D Wetherspoon (LON:JDW) Reaches New 12-Month High – Still a Buy?

J D Wetherspoon plc (LON:JDW)’s stock price reached a new 52-week high during trading on Friday. The stock traded as high as GBX 883 and last traded at GBX 880.29, with a volume of 157914 shares. The stock had previously closed at GBX 813.

Key J D Wetherspoon News

Here are the key news stories impacting J D Wetherspoon this week:

• Positive Sentiment: Annual revenue increased 5.2% to approximately £2.24 billion, with sales surpassing £2 billion. The company also reported positive like-for-like sales momentum over the latest nine-week period, indicating continued customer demand. Wetherspoon Revenue Rises 5.2% as Higher Costs Reduce Annual Profit
• Positive Sentiment: The stock reached a new 52-week high, reflecting strong recent momentum. It is trading above both its 50-day and 200-day moving averages, suggesting that investor sentiment remains supportive despite the weaker profit outlook. J D Wetherspoon Hits New 52-Week High
• Neutral Sentiment: J D Wetherspoon reported quarterly EPS of GBX 51.60, a net margin of 2.52% and return on equity of 15.81%. These figures show profitability remains positive, although margins are thin for a highly leveraged operator.
• Neutral Sentiment: Peel Hunt and Shore Capital both reaffirmed “hold” ratings, with price targets of GBX 800 and GBX 813 respectively. The recommendations suggest analysts see limited near-term upside after the recent share-price advance. J D Wetherspoon Given Hold Rating at Peel Hunt Shore Capital Reaffirms Hold Rating
• Negative Sentiment: Annual pre-tax profit fell 28% as wage, utility, business-rate and other operating costs increased. Chairman Tim Martin also highlighted the impact of higher taxes, meaning sales growth is not translating into comparable earnings growth. Wetherspoon Annual Pre-Tax Profit Falls 28%

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on JDW shares. Peel Hunt reaffirmed a “hold” rating and set a GBX 800 target price on shares of J D Wetherspoon in a research note on Friday. Shore Capital Group reissued a “hold” rating and issued a GBX 813 price target on shares of J D Wetherspoon in a research report on Friday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of GBX 728.25.

J D Wetherspoon Price Performance

The company has a quick ratio of 0.19, a current ratio of 0.23 and a debt-to-equity ratio of 353.03. The firm has a fifty day moving average price of GBX 811.86 and a two-hundred day moving average price of GBX 701.20. The stock has a market capitalization of £931.26 million, a P/E ratio of 15.55, a P/E/G ratio of 3.39 and a beta of 1.13.

J D Wetherspoon (LON:JDW) last posted its quarterly earnings results on Friday, October 2nd. The company reported GBX 51.60 earnings per share (EPS) for the quarter. J D Wetherspoon had a return on equity of 17.99% and a net margin of 2.70%. On average, analysts expect that J D Wetherspoon plc will post 52.8508772 EPS for the current year.

J D Wetherspoon Company Profile

J D Wetherspoon owns and operates pubs and hotels throughout the UK and Ireland. The company aims to provide customers with good-quality food and drinks, served by well-trained and friendly staff, at reasonable prices.

The pubs are individually designed, and the company aims to maintain them in excellent condition.