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 equities research analysts also recently commented on NCMI. Barrington Research reaffirmed a hold rating on shares of National CineMedia in a research note on Friday, March 1st. TheStreet raised shares of National CineMedia from a c rating to a b- rating in a research note on Friday, March 15th. BidaskClub downgraded shares of National CineMedia from a buy rating to a hold rating in a research note on Thursday, January 17th. Finally, Wedbush reaffirmed a hold rating and issued a $8.00 target price on shares of National CineMedia in a research note on Tuesday. Six equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. National CineMedia presently has an average rating of Hold and an average target price of $9.31.
National CineMedia (NASDAQ:NCMI) last posted its quarterly earnings results on Monday, May 6th. The business services provider reported ($0.01) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.02) by $0.01. The business had revenue of $76.90 million during the quarter, compared to the consensus estimate of $82.43 million. National CineMedia had a net margin of 6.98% and a negative return on equity of 33.32%. National CineMedia’s revenue for the quarter was down 4.1% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.03) earnings per share. As a group, equities analysts anticipate that National CineMedia will post 0.44 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Thursday, May 16th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 8.75%. The ex-dividend date is Wednesday, May 15th. National CineMedia’s payout ratio is presently 183.78%.
A number of large investors have recently modified their holdings of NCMI. Bank of Montreal Can increased its stake 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 purchasing an additional 1,590 shares in the last quarter. FNY Investment Advisers LLC boosted its holdings in shares of National CineMedia by 255.8% in the fourth quarter. FNY Investment Advisers LLC now owns 5,971 shares of the business services provider’s stock valued at $38,000 after buying an additional 4,293 shares during the period. SG Americas Securities LLC acquired a new position in shares of National CineMedia in the fourth quarter valued at approximately $65,000. Strs Ohio acquired a new position in shares of National CineMedia in the fourth quarter valued at approximately $87,000. Finally, Jane Street Group LLC acquired a new position in shares of National CineMedia in the third quarter valued at approximately $123,000. 91.32% of the stock is owned by hedge funds and other 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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