National CineMedia, Inc. (NASDAQ:NCMI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a 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 research analysts have also weighed in on NCMI. BidaskClub lowered National CineMedia from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 8th. B. Riley restated a “buy” rating and set a $14.00 price objective on shares of National CineMedia in a research report on Wednesday, August 2nd. Wedbush started coverage on National CineMedia in a research report on Wednesday, August 2nd. They set a “neutral” rating and a $6.50 price objective for the company. J P Morgan Chase & Co restated a “neutral” rating and set a $8.00 price objective (down previously from $12.00) on shares of National CineMedia in a research report on Tuesday, August 8th. Finally, Credit Suisse Group cut their price objective on National CineMedia from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, September 28th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $10.93.
Shares of National CineMedia (NCMI) opened at 6.93 on Wednesday. The company has a market cap of $420.06 million, a price-to-earnings ratio of 21.66 and a beta of 0.68. National CineMedia has a 52 week low of $5.12 and a 52 week high of $16.05. The firm’s 50-day moving average price is $6.30 and its 200 day moving average price is $8.03.
National CineMedia (NASDAQ:NCMI) last issued its quarterly earnings data on Monday, August 7th. The business services provider reported $0.03 earnings per share 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 net margin of 4.56% and a negative return on equity of 16.58%. The company’s revenue for the quarter was down 15.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.11 EPS. On average, equities research analysts forecast that National CineMedia will post $0.29 EPS for the current year.
In related news, major shareholder American Multi-Cinema, Inc. sold 12,000,000 shares of National CineMedia stock in a transaction dated Monday, September 18th. The stock was sold at an average price of $6.09, for a total value of $73,080,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Amc Starplex, Llc sold 2,800,000 shares of National CineMedia stock in a transaction dated Friday, September 29th. The stock was sold at an average price of $6.49, for a total value of $18,172,000.00. The disclosure for this sale can be found here. Company insiders own 5.40% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. DRW Securities LLC purchased a new position in National CineMedia in the second quarter worth about $142,000. The Manufacturers Life Insurance Company grew its position in National CineMedia by 4.9% in the second quarter. The Manufacturers Life Insurance Company now owns 50,503 shares of the business services provider’s stock worth $375,000 after acquiring an additional 2,341 shares in the last quarter. State Street Corp grew its position in National CineMedia by 2.3% in the second quarter. State Street Corp now owns 1,422,084 shares of the business services provider’s stock worth $10,553,000 after acquiring an additional 32,047 shares in the last quarter. Janus Henderson Group PLC purchased a new position in National CineMedia in the second quarter worth about $27,242,000. Finally, Western Standard LLC purchased a new position in National CineMedia in the second quarter worth about $1,372,000. Institutional investors own 85.38% of the company’s stock.
National CineMedia Company Profile
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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