National CineMedia (NASDAQ:NCMI) Trading Down 9.5% Following Weak Earnings

National CineMedia, Inc. (NASDAQ:NCMI) was down 9.5% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $6.60 and last traded at $6.61. Approximately 1,343,022 shares traded hands during trading, an increase of 120% from the average daily volume of 609,761 shares. The stock had previously closed at $7.30.

The business services provider reported ($0.04) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.01). National CineMedia had a return on equity of 3.50% and a net margin of 78.04%. The firm had revenue of $62.40 million for the quarter, compared to analysts’ expectations of $58.20 million. During the same period in the prior year, the firm posted $0.33 earnings per share.

Analysts Set New Price Targets

NCMI has been the topic of several recent analyst reports. Wedbush reiterated a “neutral” rating and issued a $7.50 price target (up from $6.00) on shares of National CineMedia in a report on Monday. Barrington Research lifted their target price on National CineMedia from $7.50 to $8.25 and gave the stock an “outperform” rating in a research report on Wednesday. Benchmark reissued a “buy” rating and set a $8.00 target price on shares of National CineMedia in a research note on Monday, September 23rd. Finally, B. Riley raised their price target on shares of National CineMedia from $7.50 to $8.50 and gave the stock a “buy” rating in a research note on Friday, August 16th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $8.06.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. boosted its stake in shares of National CineMedia by 16.2% during the third quarter. Oppenheimer Asset Management Inc. now owns 56,277 shares of the business services provider’s stock valued at $397,000 after purchasing an additional 7,859 shares in the last quarter. Harbor Capital Advisors Inc. lifted its holdings in National CineMedia by 124.9% during the third quarter. Harbor Capital Advisors Inc. now owns 469,338 shares of the business services provider’s stock worth $3,309,000 after buying an additional 260,689 shares during the period. Riverwater Partners LLC bought a new stake in National CineMedia during the 3rd quarter valued at $461,000. OmniStar Financial Group Inc. bought a new stake in National CineMedia during the 3rd quarter valued at $566,000. Finally, SG Americas Securities LLC increased its holdings in shares of National CineMedia by 141.2% in the 3rd quarter. SG Americas Securities LLC now owns 30,929 shares of the business services provider’s stock valued at $218,000 after acquiring an additional 18,108 shares during the period. Hedge funds and other institutional investors own 69.49% of the company’s stock.

National CineMedia Trading Down 10.5 %

The company has a current ratio of 2.45, a quick ratio of 2.45 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $630.60 million, a P/E ratio of 2.44 and a beta of 2.07. The company has a 50-day moving average price of $6.89 and a 200 day moving average price of $5.78.

About National CineMedia

National CineMedia, Inc, through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment 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.