National CineMedia (NASDAQ:NCMI) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded National CineMedia from “hold” to “sell.” Analyst views remain mixed: MarketBeat’s average rating is “hold,” with an average price target of $4.20.
• Shares opened at $1.58, near their 12-month low of $1.43 and below their 50-day and 200-day moving averages.
• The company reported quarterly EPS of negative $0.10, missing the consensus estimate of negative $0.09, while revenue of $58.4 million also fell short of expectations.

National CineMedia (NASDAQ:NCMI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on the company. National Bank Financial set a $1.75 target price on National CineMedia in a research report on Monday. Wedbush set a $5.00 price objective on National CineMedia and gave the company an "outperform" rating in a research note on Wednesday, August 12th. Zacks Research upgraded National CineMedia from a "strong sell" rating to a "hold" rating in a report on Wednesday, September 9th. Weiss Ratings downgraded National CineMedia from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. Finally, Barrington Research set a $4.25 target price on shares of National CineMedia in a report on Wednesday, August 12th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $4.20.

National CineMedia Price Performance

Shares of NCMI stock opened at $1.58 on Friday. National CineMedia has a 12 month low of $1.43 and a 12 month high of $4.33. The stock has a 50-day moving average price of $2.14 and a 200 day moving average price of $3.12. The firm has a market cap of $148.17 million, a price-to-earnings ratio of -17.55 and a beta of 1.75. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.04.

National CineMedia (NASDAQ:NCMI - Get Free Report) last announced its 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). National CineMedia had a negative net margin of 3.05% and a negative return on equity of 1.31%. The company had revenue of $58.40 million during the quarter, compared to the consensus estimate of $59.34 million. Research analysts expect that National CineMedia will post 0.17 EPS for the current year.

Insider Buying and Selling at National CineMedia

In other National CineMedia news, insider Maria Woods sold 12,189 shares of the company's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $2.09, for a total value of $25,475.01. Following the transaction, the insider directly owned 176,806 shares in the company, valued at $369,524.54. This represents a 6.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On National CineMedia

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its holdings in shares of National CineMedia by 16.0% in the 2nd quarter. Wellington Management Group LLP now owns 3,220,165 shares of the business services provider's stock worth $12,237,000 after buying an additional 444,984 shares during the period. Dimensional Fund Advisors LP lifted its stake in National CineMedia by 3.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,997,905 shares of the business services provider's stock valued at $6,094,000 after buying an additional 62,395 shares in the last quarter. Luxor Capital Group LP lifted its stake in National CineMedia by 61.3% in the 1st quarter. Luxor Capital Group LP now owns 1,820,737 shares of the business services provider's stock worth $5,553,000 after purchasing an additional 691,879 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in National CineMedia in the second quarter worth approximately $2,653,000. Finally, Zazove Associates LLC boosted its holdings in National CineMedia by 78.3% during the 1st quarter. Zazove Associates LLC now owns 458,939 shares of the business services provider's stock valued at $1,400,000 after acquiring an additional 201,564 shares during the period. 69.49% of the stock is owned by hedge funds and other institutional investors.

National CineMedia Company Profile

National CineMedia, Inc NASDAQ: NCMI is a media and advertising company focused on cinema-based marketing in the United States. Through its network of movie theaters, the company sells advertising opportunities that allow brands to reach audiences before feature films and throughout the theater environment.

Its primary product is the Noovie pre-show, a branded entertainment and advertising program shown on theater screens before movies. National CineMedia also offers on-screen advertising, lobby and other in-theater placements, digital and experiential campaigns, and related marketing solutions designed to connect advertisers with moviegoers.

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