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

Key Points

• Analysts give NCMI a consensus rating of Moderate Buy (three buy, three hold) with an average 12‑month target of $5.38.
• National CineMedia beat quarterly EPS estimates ($0.28 vs. $0.25) but remains unprofitable with a negative net margin and P/E, and it pays a quarterly $0.03 dividend (annualized yield ~3.5%) despite a negative payout ratio.
• Several brokers have recently cut price targets while institutional investors now own about 69.5% of the shares after large stake increases (e.g., Orbis Allan Gray), and an insider sold 12,066 shares.

National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report) has earned a consensus rating of "Moderate Buy" from the six brokerages that are currently covering the company, MarketBeat Ratings reports. Three equities research 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.

Several equities analysts have recently weighed in on NCMI shares. Barrington Research decreased their price target on shares of National CineMedia from $6.50 to $5.50 and set an "outperform" rating for the company in a research note on Monday, January 26th. B. Riley Financial cut their price objective on shares of National CineMedia from $5.00 to $4.00 and set a "neutral" rating on the stock in a research report on Thursday, January 22nd. Weiss Ratings upgraded shares of National CineMedia from a "sell (d-)" rating to a "hold (c-)" rating in a report on Friday, February 27th. Finally, Benchmark lowered their price target on shares of National CineMedia from $7.00 to $6.00 and set a "buy" rating on the stock in a research note on Wednesday, January 7th.

National CineMedia Stock Performance

Shares of National CineMedia stock opened at $3.46 on Wednesday. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.22 and a quick ratio of 2.22. The firm has a market cap of $322.75 million, a price-to-earnings ratio of -34.60 and a beta of 1.43. The stock's 50-day moving average is $3.37 and its 200-day moving average is $3.73. National CineMedia has a one year low of $2.92 and a one year high of $5.88.

National CineMedia (NASDAQ:NCMI - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The business services provider reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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%. Equities analysts predict that National CineMedia will post 0.02 earnings per share for the current fiscal year.

National CineMedia Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Stockholders of record on Monday, March 9th were issued a $0.03 dividend. The ex-dividend date was Monday, March 9th. This represents a $0.12 annualized dividend and a dividend yield of 3.5%. National CineMedia's dividend payout ratio (DPR) is presently -120.00%.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Orbis Allan Gray Ltd raised its stake in shares of National CineMedia by 79.5% during the 4th quarter. Orbis Allan Gray Ltd now owns 9,523,889 shares of the business services provider's stock worth $37,048,000 after purchasing an additional 4,218,288 shares in the last quarter. Lunate Capital Ltd bought a new position in shares of National CineMedia in the third quarter valued at $36,740,000. Hotchkis & Wiley Capital Management LLC grew its stake in shares of National CineMedia by 34.2% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 6,151,313 shares of the business services provider's stock valued at $27,742,000 after buying an additional 1,568,376 shares in the last quarter. Vanguard Group Inc. increased its holdings in National CineMedia by 0.3% during the third quarter. Vanguard Group Inc. now owns 4,519,377 shares of the business services provider's stock worth $20,382,000 after buying an additional 12,172 shares during the last quarter. Finally, Barclays PLC increased its holdings in National CineMedia by 30.1% during the fourth quarter. Barclays PLC now owns 2,003,352 shares of the business services provider's stock worth $7,793,000 after buying an additional 463,112 shares during the last quarter. 69.49% of the stock is currently owned by institutional investors.

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.

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