Wall Street Zen Upgrades National CineMedia (NASDAQ:NCMI) to Hold

Key Points

• Wall Street Zen upgraded National CineMedia to “Hold” from “Sell,” while analyst opinions remain mixed. The stock has an average “Hold” rating and an average price target of $4.81.
• National CineMedia shares opened at $2.06, near their 52-week low of $1.99 and down 8.4%. The company’s latest quarterly results missed estimates, with a $0.10 per-share loss and revenue of $58.4 million versus the $59.34 million consensus.
• An insider sold 12,189 shares for approximately $25,475, while institutional investors own 69.49% of the company. Several major funds increased their stakes, including Wellington Management, Luxor Capital and Zazove Associates.

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

Several other brokerages have also recently weighed in on NCMI. Weiss Ratings cut shares of National CineMedia from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Wedbush set a $5.00 price objective on shares of National CineMedia and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Barrington Research set a $4.25 target price on shares of National CineMedia in a research note on Wednesday, August 12th. Finally, Zacks Research upgraded shares of National CineMedia from a "strong sell" rating to a "hold" rating in a research note on Wednesday, September 9th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, National CineMedia has an average rating of "Hold" and an average price target of $4.81.

National CineMedia Stock Down 8.4%

Shares of NASDAQ:NCMI opened at $2.06 on Friday. National CineMedia has a 52 week low of $1.99 and a 52 week high of $4.56. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.84 and a current ratio of 1.84. The company's fifty day moving average is $2.43 and its 200-day moving average is $3.16. The company has a market capitalization of $193.19 million, a PE ratio of -22.89 and a beta of 1.61.

National CineMedia (NASDAQ:NCMI - Get Free Report) last posted its earnings results on Tuesday, August 11th. The business services provider reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.09) by ($0.01). The firm had revenue of $58.40 million during the quarter, compared to the consensus estimate of $59.34 million. National CineMedia had a negative return on equity of 1.31% and a negative net margin of 3.05%. Equities research analysts predict that National CineMedia will post 0.17 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Maria Woods sold 12,189 shares of National CineMedia 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 completion of the transaction, the insider directly owned 176,806 shares of the company's stock, valued at $369,524.54. The trade was a 6.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On National CineMedia

Hedge funds have recently added to or reduced their stakes in the stock. Wellington Management Group LLP raised its stake in shares of National CineMedia by 16.0% in the second quarter. Wellington Management Group LLP now owns 3,220,165 shares of the business services provider's stock worth $12,237,000 after acquiring an additional 444,984 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of National CineMedia by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,997,905 shares of the business services provider's stock worth $6,094,000 after purchasing an additional 62,395 shares in the last quarter. Luxor Capital Group LP lifted its position in shares of National CineMedia by 61.3% during the first 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 bought a new stake in shares of National CineMedia during the second quarter valued at approximately $2,653,000. Finally, Zazove Associates LLC grew its stake in shares of National CineMedia by 78.3% during the first quarter. Zazove Associates LLC now owns 458,939 shares of the business services provider's stock valued at $1,400,000 after purchasing an additional 201,564 shares during the last quarter. Institutional investors own 69.49% of the company's stock.

National CineMedia Company Profile

National CineMedia, Inc NASDAQ: NCMI is a media company focused on advertising and entertainment in movie theaters. Through its Noovie pre-show network, the company delivers advertising, branded content, movie-related entertainment and other programming to audiences before films begin.

National CineMedia sells and distributes national, regional and local advertising campaigns across participating cinema locations in the United States. Its offerings can include on-screen video advertising, interactive promotions, lobby advertising and other theater-based marketing programs designed to connect brands with moviegoers.

The company was established in 2005 and became a publicly traded company in 2007.

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