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. “
Other equities research analysts also recently issued research reports about the company. B. Riley set a $10.00 target price on National CineMedia and gave the company a buy rating in a report on Wednesday, August 21st. Wedbush upgraded National CineMedia from a neutral rating to an outperform rating and set a $8.00 price target for the company in a research report on Wednesday, June 19th. ValuEngine cut National CineMedia from a hold rating to a sell rating in a research report on Friday, May 24th. Barrington Research restated a market perform rating on shares of National CineMedia in a research report on Friday, May 17th. Finally, BidaskClub upgraded National CineMedia from a buy rating to a strong-buy rating in a research report on Saturday, August 31st. One analyst has rated the stock with a sell rating, one has assigned a hold rating, three have given a buy rating and one has issued a strong buy rating to the stock. National CineMedia presently has an average rating of Buy and an average target price of $9.08.
National CineMedia (NASDAQ:NCMI) last issued its quarterly earnings results on Monday, August 5th. The business services provider reported $0.11 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate 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 firm had revenue of $110.20 million during the quarter, compared to the consensus estimate of $113.07 million. During the same period last year, the company earned $0.05 earnings per share. The company’s revenue for the quarter was down 3.1% on a year-over-year basis. On average, equities analysts anticipate that National CineMedia will post 0.46 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, August 30th. Stockholders of record on Thursday, August 15th were given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 8.35%. The ex-dividend date was Wednesday, August 14th. National CineMedia’s dividend payout ratio is currently 183.78%.
In related news, major shareholder General L.P. Standard acquired 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 21st. The stock was purchased at an average price of $7.07 per share, for a total transaction of $212,100.00. The purchase was disclosed in a document filed with the SEC, which is available at this link. In the last 90 days, insiders bought 527,000 shares of company stock valued at $4,001,060. Company insiders own 3.90% of the company’s stock.
A number of institutional investors have recently bought and sold shares of NCMI. Martingale Asset Management L P increased its position in National CineMedia by 57.6% during the 1st quarter. Martingale Asset Management L P now owns 575,554 shares of the business services provider’s stock worth $4,058,000 after purchasing an additional 210,439 shares in the last quarter. Systematic Financial Management LP acquired a new stake in shares of National CineMedia during the second quarter worth $821,000. APG Asset Management N.V. acquired a new stake in shares of National CineMedia during the second quarter worth $698,000. Los Angeles Capital Management & Equity Research Inc. raised its position in shares of National CineMedia by 44.4% during the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 231,072 shares of the business services provider’s stock worth $1,516,000 after purchasing an additional 71,075 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of National CineMedia by 2.7% during 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 during the period. Hedge funds and other institutional investors own 89.92% of the company’s stock.
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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