Zacks Investment Research cut shares of NCR (NYSE:NCR) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
According to Zacks, “NCR's highly leveraged balance sheet and competition from Diebold and HP, remains concerns. We also remain slightly cautious about the weakness in the ATM business and decline in Software License. The decline in ATM revenues is mainly due to supply constraints owing to the company’s transition from 30 Series to 80 Series product line. Seasonal nature of the business leads to fluctuation in cash flows, making it difficult for NCR to determine working capital requirements. These factors make forecasting difficult and may negatively affect the company’s ability to project financial results accurately. Shares underperformed the industry in the year to date period. Nonetheless, NCR’s focus on growth of cloud segment and modernization of its Services business are proving to be worthy. Estimates have been stable lately ahead of the company’s Q3 earnings release.”
Other equities analysts have also recently issued research reports about the company. TheStreet cut NCR from a b- rating to a c- rating in a report on Friday, July 27th. Benchmark reissued a buy rating and set a $44.00 price target on shares of NCR in a research note on Wednesday, July 25th. ValuEngine raised NCR from a strong sell rating to a sell rating in a research note on Monday, October 22nd. UBS Group lowered NCR from an outperform rating to a market perform rating in a research note on Friday, July 27th. Finally, JPMorgan Chase & Co. decreased their price target on NCR from $38.00 to $35.00 and set an overweight rating for the company in a research note on Friday, July 27th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $37.80.
NCR (NYSE:NCR) last announced its earnings results on Thursday, July 26th. The information technology services provider reported $0.65 EPS for the quarter, topping the Zacks’ consensus estimate of $0.63 by $0.02. The firm had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.59 billion. NCR had a positive return on equity of 73.82% and a negative net margin of 0.80%. The company’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.80 EPS. Sell-side analysts predict that NCR will post 2.61 earnings per share for the current fiscal year.
NCR announced that its Board of Directors has initiated a share buyback program on Thursday, July 26th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the information technology services provider to repurchase up to 6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.
Several hedge funds have recently modified their holdings of the stock. Congress Asset Management Co. MA lifted its stake in shares of NCR by 10.1% during the 3rd quarter. Congress Asset Management Co. MA now owns 66,571 shares of the information technology services provider’s stock worth $1,891,000 after acquiring an additional 6,105 shares during the last quarter. Dorsey & Whitney Trust CO LLC bought a new stake in shares of NCR during the 3rd quarter worth approximately $222,000. First Trust Advisors LP lifted its stake in shares of NCR by 17.1% during the 3rd quarter. First Trust Advisors LP now owns 69,165 shares of the information technology services provider’s stock worth $1,965,000 after acquiring an additional 10,091 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in shares of NCR by 5.4% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,907,786 shares of the information technology services provider’s stock worth $54,200,000 after acquiring an additional 97,535 shares during the last quarter. Finally, Skylands Capital LLC bought a new stake in NCR during the 3rd quarter valued at $1,702,000. 91.25% of the stock is owned by hedge funds and other institutional investors.
NCR Corporation provides omni-channel technology solutions for businesses to connect, interact, and transact with their customers worldwide. The company's Software segment offers industry-based software platforms and applications and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry.
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