National CineMedia (NASDAQ:NCMI) Trading Down 9.5% on Disappointing Earnings

National CineMedia, Inc. (NASDAQ:NCMI) shares dropped 9.5% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $6.60 and last traded at $6.61. Approximately 1,343,022 shares were traded 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) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.01). National CineMedia had a net margin of 78.04% and a return on equity of 3.50%. The firm had revenue of $62.40 million for the quarter, compared to the consensus estimate of $58.20 million. During the same period in the prior year, the business earned $0.33 earnings per share.

Analyst Ratings Changes

Several research firms have recently commented on NCMI. Wedbush reaffirmed a “neutral” rating and issued a $7.50 target price (up previously from $6.00) on shares of National CineMedia in a research report on Monday. Benchmark reaffirmed a “buy” rating and set a $8.00 target price on shares of National CineMedia in a research report on Monday, September 23rd. Barrington Research upped their price objective on National CineMedia from $7.50 to $8.25 and gave the company an “outperform” rating in a research note on Wednesday. Finally, B. Riley increased their price objective on National CineMedia from $7.50 to $8.50 and gave the stock a “buy” rating in a report on Friday, August 16th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $8.06.

Institutional Trading of National CineMedia

Several hedge funds have recently made changes to their positions in NCMI. SG Americas Securities LLC acquired a new stake in National CineMedia in the second quarter valued at approximately $56,000. Fermata Advisors LLC purchased a new position in shares of National CineMedia during the 2nd quarter worth $92,000. Bayesian Capital Management LP purchased a new position in shares of National CineMedia during the 1st quarter worth $104,000. Oppenheimer Asset Management Inc. lifted its stake in National CineMedia by 38.9% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 23,897 shares of the business services provider’s stock worth $123,000 after acquiring an additional 6,690 shares in the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of National CineMedia in the second quarter worth $124,000. 69.49% of the stock is currently owned by hedge funds and other institutional investors.

National CineMedia Price Performance

The stock’s fifty day moving average price is $6.88 and its two-hundred day moving average price is $5.79. The firm has a market capitalization of $637.84 million, a price-to-earnings ratio of 2.46 and a beta of 2.07. The company has a current ratio of 2.45, a quick ratio of 2.45 and a debt-to-equity ratio of 0.03.

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.