National CineMedia (NASDAQ:NCMI) Upgraded by Zacks Investment Research to Buy

National CineMedia (NASDAQ:NCMI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday, Zacks.com reports. The firm currently has a $7.25 price objective on the business services provider’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 13.28% from the company’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. “

A number of other brokerages have also recently weighed in on NCMI. Barrington Research restated a “market perform” rating on shares of National CineMedia in a research note on Friday, May 17th. TheStreet upgraded shares of National CineMedia from a “c” rating to a “b-” rating in a research note on Friday, March 15th. BidaskClub cut shares of National CineMedia from a “hold” rating to a “sell” rating in a research note on Friday, April 26th. Wedbush upgraded shares of National CineMedia from a “neutral” rating to an “outperform” rating and set a $8.00 price objective for the company in a research note on Wednesday, June 19th. Finally, ValuEngine cut shares of National CineMedia from a “hold” rating to a “sell” rating in a research note on Friday, May 24th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company. National CineMedia currently has an average rating of “Hold” and a consensus target price of $8.94.

NCMI stock opened at $6.40 on Tuesday. The company has a market capitalization of $518.82 million, a P/E ratio of 17.30 and a beta of 0.81. National CineMedia has a 12 month low of $5.88 and a 12 month high of $10.94. The business has a 50 day simple moving average of $6.91.

National CineMedia (NASDAQ:NCMI) last posted its earnings results on Monday, May 6th. The business services provider reported ($0.01) EPS for the quarter, topping 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 company had revenue of $76.90 million during the quarter, compared to the consensus estimate of $82.43 million. During the same period in the previous year, the firm posted ($0.03) earnings per share. The company’s revenue for the quarter was down 4.1% compared to the same quarter last year. As a group, equities research analysts forecast that National CineMedia will post 0.44 earnings per share for the current year.

Large investors have recently added to or reduced their stakes in the stock. Bank of Montreal Can raised its stake in National CineMedia by 41.9% during the 4th 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 during the last quarter. SG Americas Securities LLC acquired a new position in National CineMedia during the 4th quarter valued at $65,000. Meitav Dash Investments Ltd. acquired a new position in shares of National CineMedia in the 1st quarter valued at $120,000. BNP Paribas Arbitrage SA raised its stake in shares of National CineMedia by 86.2% in the 1st quarter. BNP Paribas Arbitrage SA now owns 19,046 shares of the business services provider’s stock valued at $134,000 after buying an additional 8,819 shares in the last quarter. Finally, Metropolitan Life Insurance Co. NY raised its stake in shares of National CineMedia by 441.7% in the 4th quarter. Metropolitan Life Insurance Co. NY now owns 26,523 shares of the business services provider’s stock valued at $172,000 after buying an additional 21,627 shares in the last quarter. Hedge funds and other institutional investors own 90.18% of the company’s stock.

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.

Further Reading: What is a Swap?

Get a free copy of the Zacks research report on National CineMedia (NCMI)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for National CineMedia Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for National CineMedia and related companies with MarketBeat.com's FREE daily email newsletter.