Zacks Investment Research Downgrades National CineMedia, Inc. (NCMI) to Sell

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 brokerages have also issued reports on NCMI. Credit Suisse Group cut their target price 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 started coverage on National CineMedia in a research report on Wednesday, August 2nd. They issued a “neutral” rating and a $6.50 target price on the stock. J P Morgan Chase & Co reissued a “neutral” rating and issued a $8.00 target price (down previously from $12.00) on shares of National CineMedia in a research report on Tuesday, August 8th. B. Riley reissued a “buy” rating and issued a $14.00 target price on shares of National CineMedia in a research report on Wednesday, August 2nd. Finally, BidaskClub lowered National CineMedia from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 8th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $10.93.

National CineMedia (NCMI) opened at 7.01 on Wednesday. The company has a market cap of $424.90 million, a PE ratio of 21.91 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 company has a 50-day moving average price of $6.37 and a 200 day moving average price of $8.02.

National CineMedia (NASDAQ:NCMI) last announced its earnings results on Monday, August 7th. The business services provider reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.04). The firm had revenue of $97.10 million during 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 firm’s revenue for the quarter was down 15.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.11 EPS. On average, equities research analysts forecast that National CineMedia will post $0.29 EPS for the current fiscal year.

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In related news, major shareholder Amc Starplex, Llc sold 2,800,000 shares of the business’s stock in a transaction on Friday, September 29th. The shares were sold at an average price of $6.49, for a total transaction of $18,172,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder American Multi-Cinema, Inc. sold 12,000,000 shares of the business’s stock in a transaction 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. Insiders own 5.40% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. acquired a new position in National CineMedia in the first quarter valued at $161,000. Pacad Investment Ltd. boosted its stake in National CineMedia by 690.2% in the second 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 in the last quarter. Stifel Financial Corp acquired a new position in National CineMedia in the first quarter valued at $186,000. Fox Run Management L.L.C. acquired a new position in National CineMedia in the second quarter valued at $137,000. Finally, DRW Securities LLC acquired a new position in National CineMedia in the second quarter valued at $142,000. 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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