National CineMedia, Inc. (NASDAQ:NCMI) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate NCMI a "Moderate Buy" — six analysts are split (three buys, three holds) with an average 12‑month target of about $5.38, though several firms have trimmed their price targets recently.
• Shares trade near $3.28 (market cap ~$306M) with negative profitability (negative P/E and net margin) despite a recent quarterly EPS beat, and the company pays a quarterly dividend that annualizes to a 3.7% yield
• Insiders disclosed a notable sale by EVP Maria Vg Woods and institutional ownership is high (~69.5%), with several funds (AQR, Goldman, Jane Street) increasing positions in the latest quarter.

Shares of National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report) have been given a consensus rating of "Moderate Buy" by the six analysts that are presently covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $5.3750.

A number of research analysts have issued reports on the company. Barrington Research cut their price objective on National CineMedia from $6.50 to $5.50 and set an "outperform" rating for the company in a report on Monday, January 26th. B. Riley Financial cut their price objective on National CineMedia from $5.00 to $4.00 and set a "neutral" rating for the company in a report on Thursday, January 22nd. Benchmark cut their price objective on National CineMedia from $7.00 to $6.00 and set a "buy" rating for the company in a report on Wednesday, January 7th. Zacks Research raised National CineMedia from a "strong sell" rating to a "hold" rating in a report on Thursday, December 18th. Finally, Weiss Ratings raised National CineMedia from a "sell (d-)" rating to a "hold (c-)" rating in a report on Friday, February 27th.

Insider Activity

In other National CineMedia news, EVP Maria Vg Woods sold 12,066 shares of National CineMedia stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $3.04, for a total transaction of $36,680.64. Following the completion of the transaction, the executive vice president directly owned 143,097 shares of the company's stock, valued at approximately $435,014.88. This trade represents a 7.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NCMI. AQR Capital Management LLC lifted its holdings in shares of National CineMedia by 59.8% during the first quarter. AQR Capital Management LLC now owns 488,025 shares of the business services provider's stock valued at $2,850,000 after acquiring an additional 182,548 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of National CineMedia in the first quarter valued at about $255,000. Goldman Sachs Group Inc. raised its holdings in shares of National CineMedia by 21.3% in the first quarter. Goldman Sachs Group Inc. now owns 683,614 shares of the business services provider's stock valued at $3,992,000 after buying an additional 120,079 shares during the last quarter. Jane Street Group LLC raised its holdings in shares of National CineMedia by 511.8% in the first quarter. Jane Street Group LLC now owns 93,061 shares of the business services provider's stock valued at $543,000 after buying an additional 77,849 shares during the last quarter. Finally, Strs Ohio bought a new position in shares of National CineMedia in the first quarter valued at about $43,000. 69.49% of the stock is owned by institutional investors.

National CineMedia Stock Down 3.5%

Shares of NCMI stock opened at $3.28 on Friday. The stock has a market cap of $305.96 million, a P/E ratio of -32.80 and a beta of 1.40. National CineMedia has a one year low of $2.92 and a one year high of $6.18. The stock has a fifty day moving average price of $3.34 and a 200 day moving average price of $3.83. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.22 and a quick ratio of 2.22.

National CineMedia (NASDAQ:NCMI - Get Free Report) last issued its earnings results on Thursday, February 26th. The business services provider reported $0.28 EPS for the quarter, topping the consensus estimate of $0.25 by $0.03. National CineMedia had a negative return on equity of 2.29% and a negative net margin of 4.32%. Analysts predict that National CineMedia will post -0.12 earnings per share for the current year.

National CineMedia Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Shareholders of record on Monday, March 9th were issued a dividend of $0.03 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 3.7%. National CineMedia's dividend payout ratio (DPR) is presently -120.00%.

National CineMedia Company Profile

National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment.

Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.