National CineMedia, Inc. (NCMI) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of National CineMedia, Inc. (NASDAQ:NCMI) from a hold rating to a sell rating in a research note issued to investors on Saturday.
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 also recently commented on NCMI. B. Riley set a $14.00 target price on National CineMedia and gave the stock a buy rating in a report on Monday, August 7th. J P Morgan Chase & Co reiterated a neutral rating and set a $8.00 price target (down from $12.00) on shares of National CineMedia in a research report on Tuesday, August 8th. Credit Suisse Group dropped their price target on National CineMedia from $8.00 to $7.00 and set a neutral rating on the stock in a research report on Thursday, September 28th. Wedbush began coverage on National CineMedia in a research report on Wednesday, August 2nd. They set a neutral rating and a $6.50 price target on the stock. Finally, BidaskClub cut National CineMedia from a sell rating to a strong sell rating in a research report on Saturday, July 8th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the company. The stock presently has an average rating of Hold and an average target price of $10.93.
National CineMedia (NCMI) traded down $0.01 during trading hours on Friday, reaching $6.69. The company’s stock had a trading volume of 557,222 shares, compared to its average volume of 528,781. The company has a debt-to-equity ratio of -13.47, a quick ratio of 1.94 and a current ratio of 1.94. The company has a market cap of $420.91, a P/E ratio of 20.91, a P/E/G ratio of 2.84 and a beta of 0.65.
National CineMedia (NASDAQ:NCMI) last released its earnings results on Monday, August 7th. The business services provider reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.04). National CineMedia had a negative return on equity of 16.58% and a net margin of 4.56%. The firm had revenue of $97.10 million for the quarter, compared to the consensus estimate of $104.30 million. During the same period in the prior year, the business earned $0.11 EPS. The company’s quarterly revenue was down 15.9% on a year-over-year basis. equities research analysts expect that National CineMedia will post 0.27 EPS for the current year.
In other news, major shareholder American Multi-Cinema, Inc. sold 12,000,000 shares of the 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Amc Starplex, Llc sold 2,800,000 shares of the stock in a transaction that occurred on 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. 5.40% of the stock is currently owned by corporate insiders.
Institutional investors and hedge funds have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. acquired a new stake in National CineMedia in the 1st quarter valued at approximately $161,000. Pacad Investment Ltd. increased its position in National CineMedia by 690.2% in the 2nd quarter. Pacad Investment Ltd. now owns 14,223 shares of the business services provider’s stock valued at $106,000 after acquiring an additional 12,423 shares during the period. Stifel Financial Corp acquired a new stake in National CineMedia in the 1st quarter valued at approximately $186,000. Fox Run Management L.L.C. acquired a new stake in National CineMedia in the 2nd quarter valued at approximately $137,000. Finally, DRW Securities LLC acquired a new stake in National CineMedia in the 2nd quarter valued at approximately $142,000. Hedge funds and other institutional investors own 83.88% 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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