National CineMedia (NASDAQ:NCMI) Stock Price Crosses Above Two Hundred Day Moving Average – Here’s What Happened

Shares of National CineMedia, Inc. (NASDAQ:NCMI) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $3.51 and traded as high as $4.02. National CineMedia shares last traded at $3.95, with a volume of 379,105 shares traded.

Trending Headlines about National CineMedia

Here are the key news stories impacting National CineMedia this week:

• Positive Sentiment: National CineMedia agreed to acquire Captivate Holdings for $275 million from Generation Partners. Captivate operates digital video advertising networks in office buildings, apartment communities and other venues, giving NCMI a broader revenue base beyond movie theaters and creating a combined premium video and digital out-of-home advertising platform. National CineMedia to Acquire Captivate
• Positive Sentiment: Second-quarter revenue rose 12.7% year over year to $58.4 million, while operating cash flow was reported at $18.1 million and cash increased to $46.1 million. Management presented Captivate as a way to diversify the company and pursue longer-term growth. National CineMedia Q2 Earnings
• Neutral Sentiment: The Captivate transaction is expected to close with approximately 3.9 times net leverage. Although the acquisition could materially increase NCMI’s addressable advertising market, investors will likely evaluate whether the expanded platform can generate sufficient earnings and cash flow to support the additional financing burden. NCMI Captivate Financing
• Negative Sentiment: NCMI paused its dividend to help fund the Captivate acquisition. The change is particularly negative for income-focused shareholders and signals that preserving cash is a priority during the transaction. National CineMedia Dividend Suspension
• Negative Sentiment: Second-quarter results fell short of expectations: adjusted loss was about $0.10 per share versus an expected $0.09 loss, and revenue of $58.4 million missed the $59.34 million consensus. The company also reported a $9.9 million net loss, reinforcing concerns about near-term profitability as it undertakes the acquisition. National CineMedia Reports Q2 Loss

Wall Street Analysts Forecast Growth

NCMI has been the subject of a number of research analyst reports. Wedbush set a $5.00 target price on National CineMedia and gave the company an “outperform” rating in a research report on Wednesday. Barrington Research set a $4.25 price objective on National CineMedia in a research note on Wednesday. Weiss Ratings restated a “sell (d+)” rating on shares of National CineMedia in a report on Friday. Finally, Wall Street Zen raised National CineMedia from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 6th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $4.81.

National CineMedia Stock Performance

The company’s 50 day moving average price is $3.79 and its 200-day moving average price is $3.51. The stock has a market cap of $208.19 million, a P/E ratio of -24.66 and a beta of 1.38. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.82 and a current ratio of 1.82.

National CineMedia (NASDAQ:NCMI) last released its quarterly earnings results on Tuesday, August 11th. The business services provider reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.01). The firm had revenue of $58.40 million for the quarter, compared to the consensus estimate of $59.34 million. National CineMedia had a negative net margin of 3.47% and a negative return on equity of 1.80%. Equities analysts forecast that National CineMedia, Inc. will post -0.01 EPS for the current fiscal year.

Insider Activity

In other news, insider Maria Vg Woods sold 12,058 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $3.77, for a total value of $45,458.66. Following the completion of the transaction, the insider directly owned 163,162 shares of the company’s stock, valued at $615,120.74. This represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of New York Mellon Corp bought a new position in shares of National CineMedia during the 2nd quarter valued at approximately $2,653,000. Zazove Associates LLC increased its stake in shares of National CineMedia by 78.3% in the first quarter. Zazove Associates LLC now owns 458,939 shares of the business services provider’s stock worth $1,400,000 after purchasing an additional 201,564 shares in the last quarter. NewEdge Advisors LLC purchased a new position in shares of National CineMedia in the first quarter worth about $44,000. Bank of America Corp DE raised its position in shares of National CineMedia by 38.7% in the first quarter. Bank of America Corp DE now owns 74,983 shares of the business services provider’s stock valued at $229,000 after purchasing an additional 20,928 shares during the period. Finally, Luxor Capital Group LP lifted its stake in shares of National CineMedia by 61.3% during the 1st quarter. Luxor Capital Group LP now owns 1,820,737 shares of the business services provider’s stock valued at $5,553,000 after buying an additional 691,879 shares in the last quarter. Hedge funds and other institutional investors own 69.49% of the company’s stock.

National CineMedia Company Profile

National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment.

Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains.