National CineMedia, Inc. (NASDAQ:NCMI) to Issue Quarterly Dividend of $0.03

Key Points

• National CineMedia, Inc. will issue a quarterly dividend of $0.03 per share to stockholders of record on August 15th, leading to an annualized dividend of $0.12 and a dividend yield of 2.6%.
• The company's current payout ratio is 133.3%, indicating reliance on its balance sheet for dividend payments, but future projections suggest a payout ratio of 57.1% when earnings are expected to improve.
• Shares of National CineMedia saw a 3.3% increase in trading, with a recent trading price of $4.69, while analysts have mixed ratings, including a consensus "Hold" with a price target of $6.90.

National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report) declared a quarterly dividend on Tuesday, August 5th, Wall Street Journal reports. Investors of record on Friday, August 15th will be paid a dividend of 0.03 per share by the business services provider on Friday, August 29th. This represents a c) annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, August 15th.

National CineMedia has a dividend payout ratio of 133.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect National CineMedia to earn $0.21 per share next year, which means the company should continue to be able to cover its $0.12 annual dividend with an expected future payout ratio of 57.1%.

National CineMedia Stock Performance

Shares of NASDAQ NCMI traded down $0.09 during midday trading on Friday, hitting $4.42. 463,532 shares of the company traded hands, compared to its average volume of 600,759. National CineMedia has a 12-month low of $4.12 and a 12-month high of $7.60. The stock has a 50-day moving average price of $4.95 and a 200 day moving average price of $5.63. The firm has a market cap of $414.20 million, a P/E ratio of -21.05 and a beta of 2.14.

National CineMedia (NASDAQ:NCMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The business services provider reported ($0.11) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.11). The company had revenue of $51.80 million for the quarter, compared to analysts' expectations of $59.45 million. National CineMedia had a negative net margin of 8.62% and a negative return on equity of 3.51%. As a group, equities analysts expect that National CineMedia will post -0.12 earnings per share for the current year.

Analyst Upgrades and Downgrades

NCMI has been the topic of a number of recent research reports. Wedbush set a $7.00 price objective on shares of National CineMedia and gave the stock an "outperform" rating in a report on Monday, August 4th. B. Riley cut shares of National CineMedia from a "buy" rating to a "neutral" rating and set a $6.00 price objective on the stock. in a report on Friday, May 16th. Wall Street Zen cut shares of National CineMedia from a "hold" rating to a "sell" rating in a report on Thursday, May 8th. Finally, Benchmark cut their price objective on shares of National CineMedia from $8.00 to $7.00 and set a "buy" rating on the stock in a report on Wednesday, June 25th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $6.90.

About National CineMedia

National CineMedia, Inc, through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies.