National CineMedia, Inc. (NASDAQ:NCMI) was downgraded by Zacks Investment Research 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 several other reports. B. Riley restated a “buy” rating and set a $14.00 target price on shares of National CineMedia in a research report on Saturday, August 12th. BidaskClub lowered shares of National CineMedia from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 8th. J P Morgan Chase & Co restated a “neutral” rating and set a $8.00 target price (down from $12.00) on shares of National CineMedia in a research report on Tuesday, August 8th. Wedbush initiated coverage on shares of National CineMedia in a research report on Wednesday, August 2nd. They set a “neutral” rating and a $6.50 target price on the stock. Finally, Credit Suisse Group decreased their price objective on shares of National CineMedia from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, September 28th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average target price of $10.93.

National CineMedia (NASDAQ:NCMI) opened at 6.93 on Wednesday. The firm’s 50-day moving average is $6.30 and its 200-day moving average is $8.03. The firm has a market capitalization of $420.06 million, a PE ratio of 21.66 and a beta of 0.68. National CineMedia has a 52-week low of $5.12 and a 52-week high of $16.05.

National CineMedia (NASDAQ:NCMI) last issued its earnings results on Monday, August 7th. The business services provider reported $0.03 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.04). The company had revenue of $97.10 million for the quarter, compared to analysts’ expectations of $104.30 million. National CineMedia had a negative return on equity of 16.58% and a net margin of 4.56%. National CineMedia’s revenue for the quarter was down 15.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.11 earnings per share. On average, analysts anticipate that National CineMedia will post $0.29 earnings per share for the current year.

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In related news, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Amc Starplex, Llc sold 2,800,000 shares of the business’s stock in a transaction dated Friday, September 29th. The shares were sold at an average price of $6.49, for a total transaction of $18,172,000.00. The disclosure for this sale can be found here. 5.40% of the stock is owned by insiders.

A number of hedge funds have recently made changes to their positions in the stock. DRW Securities LLC acquired a new position in National CineMedia in the 2nd quarter valued at about $142,000. The Manufacturers Life Insurance Company raised its stake in National CineMedia by 4.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 50,503 shares of the business services provider’s stock valued at $375,000 after purchasing an additional 2,341 shares during the last quarter. State Street Corp raised its stake in National CineMedia by 2.3% in the 2nd quarter. State Street Corp now owns 1,422,084 shares of the business services provider’s stock valued at $10,553,000 after purchasing an additional 32,047 shares during the last quarter. Janus Henderson Group PLC acquired a new position in National CineMedia in the 2nd quarter valued at about $27,242,000. Finally, Western Standard LLC acquired a new position in National CineMedia in the 2nd quarter valued at about $1,372,000. 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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Analyst Recommendations for National CineMedia (NASDAQ:NCMI)

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