National CineMedia (NASDAQ:NCMI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday, Zacks.com reports. The firm currently has a $7.00 target price on the business services provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 8.02% from the stock’s previous close.
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. “
Several other research firms have also commented on NCMI. Barrington Research reissued a “market perform” rating on shares of National CineMedia in a research note on Friday, May 17th. TheStreet raised shares of National CineMedia from a “c” rating to a “b-” rating in a research note on Friday, March 15th. BidaskClub lowered shares of National CineMedia from a “hold” rating to a “sell” rating in a research note on Friday, April 26th. Wedbush reissued a “hold” rating and issued a $8.00 price objective on shares of National CineMedia in a research note on Tuesday, May 7th. Finally, ValuEngine lowered shares of National CineMedia from a “hold” rating to a “sell” rating in a research note on Friday, May 24th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $8.88.
National CineMedia (NASDAQ:NCMI) last posted its quarterly earnings data on Monday, May 6th. The business services provider reported ($0.01) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.02) by $0.01. National CineMedia had a net margin of 6.98% and a negative return on equity of 33.32%. The business had revenue of $76.90 million during the quarter, compared to analyst estimates of $82.43 million. During the same quarter last year, the firm posted ($0.03) earnings per share. The business’s revenue for the quarter was down 4.1% compared to the same quarter last year. Sell-side analysts expect that National CineMedia will post 0.44 EPS for the current fiscal year.
Large investors have recently modified their holdings of the stock. Bank of Montreal Can raised its holdings in National CineMedia by 41.9% in the fourth quarter. Bank of Montreal Can now owns 5,388 shares of the business services provider’s stock valued at $35,000 after acquiring an additional 1,590 shares in the last quarter. SG Americas Securities LLC acquired a new stake in National CineMedia in the fourth quarter valued at approximately $65,000. Strs Ohio acquired a new stake in National CineMedia in the fourth quarter valued at approximately $87,000. Meitav Dash Investments Ltd. acquired a new stake in National CineMedia in the first quarter valued at approximately $120,000. Finally, BNP Paribas Arbitrage SA raised its holdings in National CineMedia by 86.2% in the first quarter. BNP Paribas Arbitrage SA now owns 19,046 shares of the business services provider’s stock valued at $134,000 after acquiring an additional 8,819 shares in the last quarter. 90.18% of the stock is currently owned by hedge funds and other institutional investors.
National CineMedia Company Profile
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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