NCR Atleos Corporation (NYSE:NATL) Sees Large Decrease in Short Interest

Key Points

• Short interest plunged — short interest fell 48.9% to 1,488,556 shares as of March 13, equal to about 2.0% of shares outstanding and a days-to-cover ratio of 0.9 days.
• Quarterly beat and solid metrics — NCR Atleos reported $1.49 EPS vs. $1.22 expected and $1.15B revenue (up 4% YoY), while the stock trades around $43.51 with a $3.2B market cap and a PE of 11.54.
• High institutional ownership but mixed analyst views — institutions own 88.66% of the stock with several big investors increasing stakes, yet the consensus rating is "Hold" with an average target of $50.27 amid recent rating changes.

NCR Atleos Corporation (NYSE:NATL - Get Free Report) was the target of a large drop in short interest in March. As of March 13th, there was short interest totaling 1,488,556 shares, a drop of 48.9% from the February 26th total of 2,912,428 shares. Currently, 2.0% of the shares of the stock are sold short. Based on an average daily volume of 1,628,347 shares, the days-to-cover ratio is currently 0.9 days.

NCR Atleos Price Performance

NYSE:NATL traded down $0.23 during mid-day trading on Thursday, reaching $43.51. 1,543,753 shares of the company were exchanged, compared to its average volume of 1,720,232. The company has a quick ratio of 0.78, a current ratio of 0.96 and a debt-to-equity ratio of 6.65. The stock has a market cap of $3.20 billion, a PE ratio of 11.54 and a beta of 0.79. NCR Atleos has a 12 month low of $22.30 and a 12 month high of $48.50. The company has a fifty day moving average of $41.63 and a 200 day moving average of $39.27.

NCR Atleos (NYSE:NATL - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $1.49 earnings per share for the quarter, topping analysts' consensus estimates of $1.22 by $0.27. NCR Atleos had a net margin of 3.92% and a return on equity of 84.28%. The company had revenue of $1.15 billion during the quarter. During the same period in the prior year, the firm posted $1.11 earnings per share. The company's revenue was up 4.0% on a year-over-year basis.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. State Street Corp increased its stake in shares of NCR Atleos by 0.9% in the 4th quarter. State Street Corp now owns 2,792,251 shares of the company's stock valued at $106,413,000 after buying an additional 25,510 shares during the period. Engine Capital Management LP lifted its stake in shares of NCR Atleos by 7.2% during the fourth quarter. Engine Capital Management LP now owns 2,581,525 shares of the company's stock valued at $98,382,000 after acquiring an additional 172,846 shares during the period. Dimensional Fund Advisors LP boosted its holdings in NCR Atleos by 3.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,577,338 shares of the company's stock valued at $60,117,000 after acquiring an additional 50,798 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in NCR Atleos by 12.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,398,747 shares of the company's stock valued at $53,306,000 after acquiring an additional 157,429 shares during the last quarter. Finally, Fourth Sail Capital LP acquired a new stake in NCR Atleos in the fourth quarter worth about $33,597,000. Institutional investors and hedge funds own 88.66% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on NATL. Wolfe Research lowered shares of NCR Atleos from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 27th. Weiss Ratings raised shares of NCR Atleos from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday. DA Davidson reiterated a "neutral" rating and issued a $50.00 target price (down from $60.00) on shares of NCR Atleos in a research note on Friday, February 27th. Stifel Nicolaus set a $50.40 price target on NCR Atleos in a research report on Wednesday, March 4th. Finally, Wedbush cut NCR Atleos from an "outperform" rating to a "hold" rating and raised their price target for the company from $45.00 to $50.40 in a report on Friday, February 27th. One investment analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $50.27.

NCR Atleos Company Profile

NCR Atleos Corporation operates as a financial technology company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). The Self-Service Banking segment offers solutions, including a line of automated teller machine (ATM) and interactive teller machine (ITM) hardware and software, as well as related installation, maintenance, and managed and professional services; and solutions to manage and run the ATM channel end-to-end for financial institutions comprising back office, cash management, software management and ATM deployment, and others.

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