National CineMedia, Inc. (NCMI) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of National CineMedia, Inc. (NASDAQ:NCMI) from a hold rating to a sell rating in a research note issued to investors on Wednesday.

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. “

NCMI has been the topic of a number of other research reports. B. Riley restated a buy rating and set a $14.00 price objective on shares of National CineMedia in a research note on Saturday, August 12th. BidaskClub cut National CineMedia from a sell rating to a strong sell rating in a research note on Saturday, July 8th. J P Morgan Chase & Co restated a neutral rating and set a $8.00 price objective (down previously from $12.00) on shares of National CineMedia in a research note on Tuesday, August 8th. Wedbush assumed coverage on National CineMedia in a research note on Wednesday, August 2nd. They set a neutral rating and a $6.50 price objective on the stock. Finally, Credit Suisse Group reduced their price objective on National CineMedia from $8.00 to $7.00 and set a neutral rating on the stock in a research note on Thursday, September 28th. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. National CineMedia currently has an average rating of Hold and a consensus price target of $10.93.

Shares of National CineMedia (NASDAQ:NCMI) opened at 7.03 on Wednesday. The stock has a market cap of $426.12 million, a P/E ratio of 21.97 and a beta of 0.68. The firm’s 50-day moving average price is $6.44 and its 200 day moving average price is $7.95. National CineMedia has a one year low of $5.12 and a one year high of $16.05.

National CineMedia (NASDAQ:NCMI) last issued its quarterly earnings data on Monday, August 7th. The business services provider reported $0.03 EPS for the quarter, missing the Zacks’ consensus estimate of $0.07 by ($0.04). The company had revenue of $97.10 million for the quarter, compared to analyst estimates of $104.30 million. National CineMedia had a negative return on equity of 16.58% and a net margin of 4.56%. The company’s revenue for the quarter was down 15.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.11 EPS. Equities research analysts expect that National CineMedia will post $0.29 EPS for the current fiscal year.

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In related news, major shareholder Amc Starplex, Llc sold 2,800,000 shares of the business’s stock in a transaction dated Friday, September 29th. The stock was sold at an average price of $6.49, for a total value of $18,172,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder American Multi-Cinema, Inc. sold 12,000,000 shares of the business’s stock in a transaction dated Monday, September 18th. The shares were sold at an average price of $6.09, for a total value of $73,080,000.00. The disclosure for this sale can be found here. 5.40% of the stock is owned by insiders.

Institutional investors have recently made changes to their positions in the stock. Pacad Investment Ltd. increased its holdings in National CineMedia by 690.2% in the second quarter. Pacad Investment Ltd. now owns 14,223 shares of the business services provider’s stock valued at $106,000 after buying an additional 12,423 shares during the last quarter. Fox Run Management L.L.C. bought a new stake in National CineMedia in the second quarter valued at about $137,000. Stifel Financial Corp increased its holdings in National CineMedia by 30.5% in the second quarter. Stifel Financial Corp now owns 19,126 shares of the business services provider’s stock valued at $142,000 after buying an additional 4,468 shares during the last quarter. DRW Securities LLC bought a new stake in National CineMedia in the second quarter valued at about $142,000. Finally, Quantitative Systematic Strategies LLC bought a new stake in National CineMedia in the second quarter valued at about $159,000. 85.38% of the stock is owned by hedge funds and other institutional investors.

About National CineMedia

National CineMedia, Inc (NCM, Inc) is a holding company that manages its consolidated subsidiary National CineMedia, LLC (NCM LLC). The Company operates digital in-theater network in North America, allowing NCM LLC to sell advertising and certain third-party theater circuits under long-term network affiliate agreements.

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