Zacks Investment Research Lowers National CineMedia (NASDAQ:NCMI) to Hold

Zacks Investment Research lowered shares of National CineMedia (NASDAQ:NCMI) from a buy rating to a hold rating in a research report report published on Thursday, Zacks.com reports.

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. “

Several other analysts also recently weighed in on the company. Benchmark lifted their price objective on National CineMedia from $10.00 to $12.00 and gave the company a buy rating in a report on Wednesday, September 18th. ValuEngine downgraded National CineMedia from a hold rating to a sell rating in a report on Monday, November 4th. B. Riley downgraded National CineMedia from a buy rating to a neutral rating and decreased their price objective for the company from $9.75 to $8.50 in a report on Tuesday, November 5th. Wedbush restated a buy rating and issued a $9.00 price objective on shares of National CineMedia in a report on Tuesday, November 5th. Finally, BidaskClub downgraded National CineMedia from a buy rating to a hold rating in a report on Wednesday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $9.70.

Shares of NCMI stock traded up $0.02 on Thursday, reaching $7.60. The company’s stock had a trading volume of 329,600 shares, compared to its average volume of 356,774. The stock’s fifty day simple moving average is $8.31 and its 200-day simple moving average is $7.43. The company has a market capitalization of $558.65 million, a price-to-earnings ratio of 20.54 and a beta of 0.70. National CineMedia has a 1 year low of $5.64 and a 1 year high of $8.93.

National CineMedia (NASDAQ:NCMI) last released its quarterly earnings data on Monday, November 4th. The business services provider reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.01). The firm had revenue of $110.50 million during the quarter, compared to the consensus estimate of $118.75 million. National CineMedia had a net margin of 7.66% and a negative return on equity of 32.44%. The business’s revenue was up .4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.14 earnings per share. On average, research analysts expect that National CineMedia will post 0.44 earnings per share for the current year.

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The company also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Thursday, November 14th will be issued a $0.17 dividend. The ex-dividend date is Wednesday, November 13th. This represents a $0.68 dividend on an annualized basis and a yield of 8.95%. National CineMedia’s dividend payout ratio is presently 183.78%.

In other news, major shareholder General L.P. Standard bought 30,000 shares of National CineMedia stock in a transaction on Wednesday, August 21st. The stock was acquired at an average cost of $7.07 per share, for a total transaction of $212,100.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders acquired 527,000 shares of company stock valued at $4,001,060 over the last quarter. 3.90% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of NCMI. Cadence Capital Management LLC acquired a new position in shares of National CineMedia during the third quarter valued at about $1,989,000. Systematic Financial Management LP acquired a new position in shares of National CineMedia during the second quarter valued at about $821,000. APG Asset Management N.V. acquired a new position in shares of National CineMedia during the second quarter valued at about $698,000. Municipal Employees Retirement System of Michigan acquired a new position in shares of National CineMedia during the third quarter valued at about $770,000. Finally, Los Angeles Capital Management & Equity Research Inc. increased its holdings in shares of National CineMedia by 44.4% during the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 231,072 shares of the business services provider’s stock valued at $1,516,000 after acquiring an additional 71,075 shares in the last quarter. Hedge funds and other institutional investors own 88.61% of the company’s stock.

National CineMedia Company Profile

National CineMedia, Inc, through its subsidiary, National CineMedia, LLC, operates a digital in-theater network in North America. The company engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment pre-show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies.

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