National CineMedia (NASDAQ:NCMI) Shares Pass Above 200-Day Moving Average - Time to Sell?

Key Points

• National CineMedia shares moved above their 200-day moving average, trading as high as $3.97 before closing around $3.78. The technical move comes as investors weigh whether the stock’s recent strength signals more upside.
• Analyst sentiment remains mixed: Weiss Ratings cut NCMI to sell, Wall Street Zen downgraded it to sell, and Wedbush trimmed its price target to $6.00 while keeping an outperform rating. The overall consensus rating is Hold with an average target price of $5.38.
• The company recently beat quarterly expectations, reporting a smaller-than-expected loss and slightly higher revenue, while also paying a $0.03 quarterly dividend for a 3.2% annualized yield. However, an insider sale and negative profitability metrics may temper enthusiasm.

National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $3.50 and traded as high as $3.97. National CineMedia shares last traded at $3.78, with a volume of 383,419 shares traded.

Analyst Ratings Changes

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

National CineMedia Price Performance

The company's fifty day moving average is $3.50 and its two-hundred day moving average is $3.50. 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 firm has a market cap of $354.49 million, a price-to-earnings ratio of -42.00 and a beta of 1.36.

National CineMedia (NASDAQ:NCMI - Get Free Report) last announced 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. National CineMedia had a negative return on equity of 1.80% and a negative net margin of 3.47%.The firm had revenue of $34.00 million during the quarter, compared to the consensus estimate of $32.92 million.

National CineMedia Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were given a $0.03 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $0.12 annualized dividend and a dividend yield of 3.2%. National CineMedia's dividend payout ratio is presently -133.33%.

Insider Activity

In other news, insider Maria Vg Woods sold 12,058 shares of the 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 sale, the insider owned 163,162 shares in the company, valued at approximately $615,120.74. This trade represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On National CineMedia

A number of institutional investors and hedge funds have recently bought and sold shares of NCMI. Orbis Allan Gray Ltd grew its position in National CineMedia by 79.5% in the fourth quarter. Orbis Allan Gray Ltd now owns 9,523,889 shares of the business services provider's stock valued at $37,048,000 after acquiring an additional 4,218,288 shares in the last quarter. Hotchkis & Wiley Capital Management LLC lifted its position in shares of National CineMedia by 34.2% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 6,151,313 shares of the business services provider's stock worth $27,742,000 after purchasing an additional 1,568,376 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of 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 purchasing an additional 12,172 shares in the last quarter. Barclays PLC lifted its position in shares of 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 purchasing an additional 463,112 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of National CineMedia by 3.2% in the first quarter. Dimensional Fund Advisors LP now owns 1,997,905 shares of the business services provider's stock valued at $6,094,000 after purchasing an additional 62,395 shares during the period. Hedge funds and other institutional investors 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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