National CineMedia (NASDAQ:NCMI) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• National CineMedia shares rose above their 200-day moving average, reaching $4.02 before closing at $3.95, compared with a 200-day average of $3.51.
• Analyst sentiment remains mixed: the stock carries a consensus “Hold” rating and a $5.38 target price, while some firms recently downgraded it or reduced their price targets.
• The company exceeded quarterly revenue and adjusted its loss narrower than expected, but remains unprofitable, with a negative net margin and a dividend yield of roughly 3% despite a negative payout ratio.

National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $3.51 and traded as high as $4.02. National CineMedia shares last traded at $3.95, with a volume of 379,105 shares traded.

Analysts Set New Price Targets

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

National CineMedia Stock Performance

The stock's 50 day moving average is $3.78 and its two-hundred day moving average is $3.51. The stock has a market capitalization of $370.43 million, a price-to-earnings ratio of -43.88 and a beta of 1.38. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.03.

National CineMedia (NASDAQ:NCMI - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The business services provider reported ($0.23) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.03. The firm had revenue of $34.00 million for the quarter, compared to the consensus estimate of $32.92 million. National CineMedia had a negative return on equity of 1.80% and a negative net margin of 3.47%. Analysts expect that National CineMedia, Inc. will post -0.01 earnings per share for the current fiscal year.

National CineMedia Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $0.12 dividend on an annualized basis and a yield of 3.0%. National CineMedia's dividend payout ratio is -133.33%.

Insider Buying and Selling at National CineMedia

In other news, insider Maria Vg Woods sold 12,058 shares of National CineMedia stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $3.77, for a total value of $45,458.66. Following the sale, the insider directly owned 163,162 shares in the company, valued at $615,120.74. This trade represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp bought a new position in National CineMedia in the second quarter valued at $2,653,000. Zazove Associates LLC lifted its position in National CineMedia by 78.3% during the 1st quarter. Zazove Associates LLC now owns 458,939 shares of the business services provider's stock worth $1,400,000 after buying an additional 201,564 shares in the last quarter. NewEdge Advisors LLC acquired a new position in shares of National CineMedia during the 1st quarter worth about $44,000. Bank of America Corp DE boosted its stake in shares of National CineMedia by 38.7% during the 1st quarter. Bank of America Corp DE now owns 74,983 shares of the business services provider's stock worth $229,000 after buying an additional 20,928 shares during the last quarter. Finally, Luxor Capital Group LP grew its holdings in shares of National CineMedia by 61.3% in the 1st quarter. Luxor Capital Group LP now owns 1,820,737 shares of the business services provider's stock valued at $5,553,000 after acquiring an additional 691,879 shares in the last quarter. Institutional investors and hedge funds own 69.49% of the company's stock.

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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