Zacks Investment Research upgraded shares of National CineMedia (NASDAQ:NCMI) from a hold rating to a buy rating in a research report sent to investors on Thursday, Zacks.com reports. They currently have $7.75 price target on the business services provider’s stock.
According to Zacks, “NATIONAL CINEMEDIA operates the largest digital in theatre network in North America that allows them to distribute advertisements and other content for our advertising, meetings and events businesses utilizing our proprietary digital content network. They have long term exhibitor services agreements with our founding members, Cinemark and Regal, the three largest motion picture exhibition companies in the U.S.and multi year agreements with several other theatre operators whom they refer to as network affiliates. The network affiliate agreements grant them exclusive rights, subject to limited exceptions, to sell advertising on their theatre screens. “
A number of other equities research analysts also recently issued reports on the company. BidaskClub upgraded National CineMedia from a hold rating to a buy rating in a research report on Thursday. Barrington Research restated a market perform rating on shares of National CineMedia in a research report on Friday, May 17th. ValuEngine downgraded National CineMedia from a hold rating to a sell rating in a research report on Friday, May 24th. TheStreet downgraded National CineMedia from a b- rating to a c rating in a research report on Tuesday, May 7th. Finally, Wedbush upgraded National CineMedia from a neutral rating to an outperform rating and set a $8.00 price objective on the stock in a research report on Wednesday, June 19th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company’s stock. The company currently has an average rating of Buy and a consensus target price of $8.58.
National CineMedia (NASDAQ:NCMI) last issued its quarterly earnings data on Monday, August 5th. The business services provider reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.01. National CineMedia had a negative return on equity of 36.78% and a net margin of 8.12%. The business had revenue of $110.20 million for the quarter, compared to the consensus estimate of $113.07 million. During the same period in the prior year, the business posted $0.05 earnings per share. The company’s quarterly revenue was down 3.1% compared to the same quarter last year. Equities research analysts expect that National CineMedia will post 0.46 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Thursday, August 15th will be issued a $0.17 dividend. The ex-dividend date of this dividend is Wednesday, August 14th. This represents a $0.68 annualized dividend and a dividend yield of 9.18%. National CineMedia’s payout ratio is 183.78%.
In other news, major shareholder General L.P. Standard acquired 175,000 shares of the company’s stock in a transaction that occurred on Friday, August 23rd. The shares were bought at an average price of $7.38 per share, with a total value of $1,291,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 3.90% of the company’s stock.
A number of large investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its stake in National CineMedia by 2.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,610,424 shares of the business services provider’s stock worth $16,915,000 after purchasing an additional 67,734 shares in the last quarter. State of New Jersey Common Pension Fund D grew its stake in National CineMedia by 0.5% in the first quarter. State of New Jersey Common Pension Fund D now owns 1,970,000 shares of the business services provider’s stock worth $13,889,000 after purchasing an additional 10,000 shares in the last quarter. Bank of New York Mellon Corp grew its stake in National CineMedia by 0.6% in the second quarter. Bank of New York Mellon Corp now owns 1,656,487 shares of the business services provider’s stock worth $10,867,000 after purchasing an additional 9,180 shares in the last quarter. Northern Trust Corp grew its stake in National CineMedia by 0.9% in the second quarter. Northern Trust Corp now owns 1,531,295 shares of the business services provider’s stock worth $10,046,000 after purchasing an additional 13,738 shares in the last quarter. Finally, Norges Bank bought a new stake in National CineMedia during the 4th quarter valued at $9,716,000. 89.65% of the stock is currently owned by institutional investors.
About National CineMedia
National CineMedia, Inc, through its subsidiary, National CineMedia, LLC, operates a digital in-theater network in North America. The company engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment pre-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.
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