National CineMedia (NASDAQ:NCMI – Get Free Report) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Tuesday,Zacks.com reports.
Several other equities analysts have also recently commented on the company. Wall Street Zen upgraded National CineMedia from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 6th. Weiss Ratings reissued a “sell (d+)” rating on shares of National CineMedia in a report on Friday, August 7th. Barrington Research set a $4.25 price objective on shares of National CineMedia in a research report on Wednesday. Finally, Wedbush set a $5.00 target price on shares of National CineMedia and gave the company an “outperform” rating in a research note on Wednesday. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, National CineMedia presently has a consensus rating of “Hold” and an average target price of $4.81.
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National CineMedia Price Performance
National CineMedia (NASDAQ:NCMI – Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The business services provider reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.01). The firm had revenue of $58.40 million during the quarter, compared to the consensus estimate of $59.34 million. National CineMedia had a negative net margin of 3.05% and a negative return on equity of 1.29%. As a group, sell-side analysts forecast that National CineMedia will post -0.01 EPS for the current fiscal year.
Insider Transactions at National CineMedia
In other National CineMedia news, insider Maria Vg Woods sold 12,058 shares of National CineMedia stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $3.77, for a total transaction of $45,458.66. Following the completion of the sale, the insider owned 163,162 shares of the company’s stock, valued at $615,120.74. The trade was a 6.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.70% of the stock is currently owned by company insiders.
Institutional Trading of National CineMedia
Hedge funds have recently bought and sold shares of the company. American Century Companies Inc. grew its holdings in shares of National CineMedia by 2.2% in the second quarter. American Century Companies Inc. now owns 145,233 shares of the business services provider’s stock worth $704,000 after purchasing an additional 3,110 shares during the last quarter. EntryPoint Capital LLC increased its stake in shares of National CineMedia by 8.1% in the fourth quarter. EntryPoint Capital LLC now owns 55,439 shares of the business services provider’s stock worth $216,000 after buying an additional 4,142 shares during the period. Inscription Capital LLC raised its holdings in National CineMedia by 32.7% during the 4th quarter. Inscription Capital LLC now owns 17,214 shares of the business services provider’s stock valued at $67,000 after buying an additional 4,246 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in National CineMedia by 16.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 38,712 shares of the business services provider’s stock valued at $151,000 after buying an additional 5,390 shares during the last quarter. Finally, Pacific Ridge Capital Partners LLC boosted its position in National CineMedia by 4.6% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 124,626 shares of the business services provider’s stock valued at $485,000 after buying an additional 5,440 shares during the period. Institutional investors own 69.49% of the company’s stock.
National CineMedia News Summary
Here are the key news stories impacting National CineMedia this week:
- Positive Sentiment: National CineMedia agreed to acquire Captivate Holdings for $275 million, expanding beyond movie-theater advertising into digital video and out-of-home advertising in office buildings, apartment complexes and other venues. Management expects the transaction to create a broader premium advertising platform and potentially improve long-term growth and diversification. National CineMedia to Acquire Captivate
- Positive Sentiment: Second-quarter revenue increased approximately 12.7% year over year to $58.4 million. The company also reported $18.1 million in operating cash flow, $46.1 million in cash and modest capital spending, providing some liquidity to support the transaction. National CineMedia Q2 Earnings
- Neutral Sentiment: Management outlined acquisition financing that would leave National CineMedia at roughly 3.9 times net leverage at closing. The deal could strengthen the company’s market position, but execution, integration and debt-reduction plans will be important for investors to monitor. NCMI Captivate Financing
- Negative Sentiment: National CineMedia paused its dividend to help fund the Captivate acquisition. The lost shareholder income, combined with the higher leverage required for the purchase, triggered the sharp negative market reaction and raises concerns about financial flexibility. National CineMedia Dividend Suspension
- Negative Sentiment: Second-quarter results fell short of expectations: adjusted EPS was a $0.10 loss versus the anticipated $0.09 loss, while revenue missed estimates of $59.34 million. National CineMedia also posted a $12.8 million operating loss and a $9.9 million net loss attributable to common shareholders. National CineMedia Q2 Results
About National CineMedia
National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment.
Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains.
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