Zacks Investment Research downgraded shares of National CineMedia, Inc. (NASDAQ:NCMI) from a hold rating to a sell rating in a research report released on Wednesday.
According to Zacks, “NATIONAL CINEMEDIA operates the largest digital in theatre network in North America that allows them to distribute advertisements and other content for our advertising, meetings and events businesses utilizing our proprietary digital content network. They have long term exhibitor services agreements with our founding members, Cinemark and Regal, the three largest motion picture exhibition companies in the U.S.and multi year agreements with several other theatre operators whom they refer to as network affiliates. The network affiliate agreements grant them exclusive rights, subject to limited exceptions, to sell advertising on their theatre screens. “
A number of other brokerages also recently weighed in on NCMI. Credit Suisse Group cut their price target on shares of National CineMedia from $8.00 to $7.00 and set a neutral rating on the stock in a report on Thursday, September 28th. Wedbush began coverage on shares of National CineMedia in a report on Wednesday, August 2nd. They issued a neutral rating and a $6.50 price target on the stock. J P Morgan Chase & Co reissued a neutral rating and issued a $8.00 price target (down from $12.00) on shares of National CineMedia in a report on Tuesday, August 8th. B. Riley reissued a buy rating and issued a $14.00 price target on shares of National CineMedia in a report on Wednesday, August 2nd. Finally, BidaskClub downgraded shares of National CineMedia from a sell rating to a strong sell rating in a report on Saturday, July 8th. Two analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus target price of $10.93.
Shares of National CineMedia (NASDAQ NCMI) traded up 2.49% on Wednesday, reaching $7.01. 784,894 shares of the company traded hands. The firm has a 50-day moving average price of $6.33 and a 200 day moving average price of $8.03. National CineMedia has a one year low of $5.12 and a one year high of $16.05. The company has a market capitalization of $424.90 million, a PE ratio of 21.91 and a beta of 0.68.
National CineMedia (NASDAQ:NCMI) last posted its quarterly earnings data on Monday, August 7th. The business services provider reported $0.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.07 by ($0.04). The firm had revenue of $97.10 million for the quarter, compared to analysts’ expectations of $104.30 million. National CineMedia had a negative return on equity of 16.58% and a net margin of 4.56%. National CineMedia’s revenue was down 15.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.11 earnings per share. Equities analysts forecast that National CineMedia will post $0.29 EPS for the current fiscal year.
In related news, major shareholder Amc Starplex, Llc sold 2,800,000 shares of the company’s stock in a transaction that occurred on Friday, September 29th. The shares were sold at an average price of $6.49, for a total value of $18,172,000.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder American Multi-Cinema, Inc. sold 12,000,000 shares of the company’s stock in a transaction that occurred on Monday, September 18th. The stock was sold at an average price of $6.09, for a total transaction of $73,080,000.00. The disclosure for this sale can be found here. 5.40% of the stock is currently owned by corporate insiders.
Hedge funds have recently bought and sold shares of the stock. Renaissance Technologies LLC increased its position in shares of National CineMedia by 55.1% in the first quarter. Renaissance Technologies LLC now owns 849,100 shares of the business services provider’s stock worth $10,724,000 after purchasing an additional 301,500 shares during the last quarter. Russell Investments Group Ltd. bought a new position in shares of National CineMedia in the second quarter worth approximately $1,135,000. Thompson Siegel & Walmsley LLC increased its position in shares of National CineMedia by 238.5% in the second quarter. Thompson Siegel & Walmsley LLC now owns 2,707,647 shares of the business services provider’s stock worth $20,091,000 after purchasing an additional 1,907,741 shares during the last quarter. Engineers Gate Manager LP increased its position in shares of National CineMedia by 74.8% in the second quarter. Engineers Gate Manager LP now owns 91,122 shares of the business services provider’s stock worth $676,000 after purchasing an additional 38,984 shares during the last quarter. Finally, Vivaldi Asset Management LLC bought a new position in shares of National CineMedia in the second quarter worth approximately $1,439,000. Institutional investors own 85.38% of the company’s stock.
About National CineMedia
National CineMedia, Inc (NCM, Inc) is a holding company that manages its consolidated subsidiary National CineMedia, LLC (NCM LLC). The Company operates digital in-theater network in North America, allowing NCM LLC to sell advertising and certain third-party theater circuits under long-term network affiliate agreements.
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