National CineMedia (NASDAQ:NCMI) Trading Up 9.2% - Here's Why

Shares of National CineMedia, Inc. (NASDAQ:NCMI - Get Free Report) shot up 9.2% during trading on Tuesday . The stock traded as high as $5.32 and last traded at $5.35. 254,544 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 634,757 shares. The stock had previously closed at $4.90.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on NCMI. Barrington Research reaffirmed an "outperform" rating and issued a $7.00 target price on shares of National CineMedia in a research report on Friday, March 14th. Wall Street Zen cut National CineMedia from a "hold" rating to a "sell" rating in a research report on Thursday, May 8th. William Blair reaffirmed a "neutral" rating and issued a $7.50 target price on shares of National CineMedia in a research report on Friday, March 7th. B. Riley cut National CineMedia from a "buy" rating to a "neutral" rating and set a $6.00 target price for the company. in a research report on Friday, May 16th. Finally, Benchmark reaffirmed a "buy" rating and issued a $8.00 target price on shares of National CineMedia in a research report on Friday, March 7th. 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 company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $7.20.

National CineMedia Stock Performance

The company has a market capitalization of $519.62 million, a P/E ratio of -22.04 and a beta of 2.12. The stock has a fifty day simple moving average of $5.58 and a 200-day simple moving average of $6.26. The company has a quick ratio of 2.46, a current ratio of 2.46 and a debt-to-equity ratio of 0.03.

National CineMedia (NASDAQ:NCMI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 6th. The business services provider reported ($0.24) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.20) by ($0.04). The company had revenue of $34.90 million for the quarter, compared to the consensus estimate of $35.13 million. National CineMedia had a negative net margin of 9.49% and a negative return on equity of 2.61%. Equities analysts forecast that National CineMedia, Inc. will post -0.12 EPS for the current year.

National CineMedia Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 30th. Shareholders of record on Friday, May 16th were issued a dividend of $0.03 per share. The ex-dividend date was Friday, May 16th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 2.18%. National CineMedia's payout ratio is presently -63.16%.

Insider Buying and Selling at National CineMedia

In other National CineMedia news, major shareholder Blantyre Capital Ltd purchased 103,685 shares of the business's stock in a transaction that occurred on Monday, March 10th. The stock was acquired at an average cost of $5.18 per share, with a total value of $537,088.30. Following the completion of the acquisition, the insider now directly owns 10,310,433 shares of the company's stock, valued at $53,408,042.94. This represents a 1.02% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.25% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Strs Ohio bought a new position in shares of National CineMedia in the first quarter valued at about $43,000. Jane Street Group LLC raised its holdings in shares of National CineMedia by 511.8% in the first quarter. Jane Street Group LLC now owns 93,061 shares of the business services provider's stock valued at $543,000 after buying an additional 77,849 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of National CineMedia by 21.3% in the first quarter. Goldman Sachs Group Inc. now owns 683,614 shares of the business services provider's stock valued at $3,992,000 after buying an additional 120,079 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new position in shares of National CineMedia in the first quarter valued at about $255,000. Finally, AQR Capital Management LLC raised its holdings in shares of National CineMedia by 59.8% in the first quarter. AQR Capital Management LLC now owns 488,025 shares of the business services provider's stock valued at $2,850,000 after buying an additional 182,548 shares during the last quarter. 69.49% of the stock is owned by institutional investors.

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.