National CineMedia (NASDAQ:NCMI) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• National CineMedia shares rose above their 200-day moving average on Thursday, trading as high as $3.88 versus a 200-day average of $3.50.
• Analyst sentiment remains mixed, with an average rating of “Hold” and a consensus price target of $5.38; recent moves included a Weiss Ratings downgrade and a Wedbush target cut to $6.00.
• The company beat quarterly earnings and revenue estimates, reporting an EPS loss of $0.23 versus the expected $0.26 loss and revenue of $34.0 million versus $32.92 million expected.

National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $3.50 and traded as high as $3.88. National CineMedia shares last traded at $3.88, with a volume of 198,973 shares.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on NCMI shares. Weiss Ratings lowered shares of National CineMedia from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, May 13th. Wall Street Zen upgraded shares of National CineMedia from a "strong sell" rating to a "sell" rating in a research report on Saturday, June 6th. Finally, Wedbush reduced their price target on shares of National CineMedia from $6.50 to $6.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, National CineMedia currently has an average rating of "Hold" and a consensus target price of $5.38.

National CineMedia Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.82 and a current ratio of 1.82. The company has a market capitalization of $363.87 million, a price-to-earnings ratio of -43.11 and a beta of 1.36. The firm has a 50-day simple moving average of $3.46 and a two-hundred day simple moving average of $3.50.

National CineMedia (NASDAQ:NCMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The business services provider reported ($0.23) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.03. National CineMedia had a negative net margin of 3.47% and a negative return on equity of 1.80%. The business had revenue of $34.00 million for the quarter, compared to analysts' expectations of $32.92 million.

National CineMedia Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a $0.03 dividend. The ex-dividend date was Friday, May 22nd. This represents a $0.12 dividend on an annualized basis and a yield of 3.1%. National CineMedia's dividend payout ratio (DPR) is -133.33%.

Insider Activity

In other news, insider Maria Vg Woods sold 12,058 shares of National CineMedia stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $3.77, for a total value of $45,458.66. Following the completion of the transaction, the insider owned 163,162 shares in the company, valued at approximately $615,120.74. This trade represents a 6.88% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On National CineMedia

Several institutional investors have recently modified their holdings of the company. Lunate Capital Ltd purchased a new stake in shares of National CineMedia during the 3rd quarter worth approximately $36,740,000. Luxor Capital Group LP boosted its stake in shares of National CineMedia by 29.2% during the third quarter. Luxor Capital Group LP now owns 1,074,058 shares of the business services provider's stock worth $4,844,000 after buying an additional 242,450 shares during the period. NewEdge Advisors LLC purchased a new position in shares of National CineMedia in the 1st quarter valued at approximately $44,000. Renaissance Technologies LLC purchased a new position in National CineMedia in the 1st quarter valued at $59,000. Finally, Sei Investments Co. boosted its holdings in shares of National CineMedia by 86.7% in the first quarter. Sei Investments Co. now owns 182,652 shares of the business services provider's stock valued at $557,000 after acquiring an additional 84,808 shares in the last quarter. 69.49% of the stock is owned by hedge funds and other institutional investors.

About National CineMedia

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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