Safestay (LON:SSTY) Shares Down 28% – Here’s Why

Safestay plc (LON:SSTY)’s share price dropped 28% during mid-day trading on Friday. The company traded as low as GBX 8 and last traded at GBX 9. Approximately 289,004 shares traded hands during mid-day trading, an increase of 85% from the average daily volume of 155,946 shares. The stock had previously closed at GBX 12.50.

Analysts Set New Price Targets

Separately, Shore Capital Group reaffirmed a “house stock” rating on shares of Safestay in a research note on Wednesday, August 5th.

Safestay Price Performance

The stock has a market cap of £5.84 million, a PE ratio of -0.58 and a beta of 1.34. The company has a quick ratio of 1.26, a current ratio of 0.55 and a debt-to-equity ratio of 334.89. The company’s fifty day moving average is GBX 12.42 and its 200 day moving average is GBX 13.41.

Safestay (LON:SSTY) last released its quarterly earnings data on Friday, September 25th. The company reported GBX (2.76) earnings per share (EPS) for the quarter. Safestay had a negative return on equity of 44.19% and a negative net margin of 48.84%. As a group, sell-side analysts anticipate that Safestay plc will post 24.0500009 earnings per share for the current fiscal year.

Safestay Company Profile

Safestay PLC is one of Europe’s largest hostel groups, operating in the fragmented and fast-growing global hostel market that is expected to be worth $8.9bn annually by 2027*.

Safestay’s portfolio of 20 premium hostels and one hotel offer guests both private and shared rooms in destination cities across the UK, Spain, Belgium, Czech Republic, Germany, Greece, Italy, Poland, Portugal, and Slovakia.

In 2024, the Group delivered a 10% increase in Total Bed Nights to 931,688, 37% of which were booked through direct and non-commissionable channels.