How does National CineMedia Inc. (NCMI) change from a tortoise to a hare?

National CineMedia Inc. (NASDAQ: NCMI) stock fell -0.94% on Friday to $0.90 against a previous-day closing price of $0.91. With 1.42 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.06 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $0.9290 whereas the lowest price it dropped to was $0.8726. The 52-week range on NCMI shows that it touched its highest point at $3.97 and its lowest point at $0.88 during that stretch. It currently has a 1-year price target of $3.50. With its current market cap of 83.45 million, NCMI has annualized dividend of $0.12 while the current yield stands at 13.26%. Beta for the stock currently stands at 1.75.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NCMI was down-trending over the past week, with a drop of -15.42%, but this was down by -30.92% over a month. Three-month performance dropped to -15.42% while six-month performance fell -63.21%. The stock lost -72.07% in the past year, while it has lost -67.79% so far this year. A look at the trailing 12-month EPS for NCMI yields -0.40 with Next year EPS estimates of 0.09. For the next quarter, that number is -0.12. This implies an EPS growth rate of 27.30% for this year and 138.10% for next year. EPS is expected to decline by -6.33% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -25.60%.

Float and Shares Shorts:

At present, 81.47 million NCMI shares are outstanding with a float of 73.55 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.26 million, which was 3.99% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas F. Lesinski as the firm’s CEO & Director, Mr. Ronnie Y. Ng serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 47.76% of NCMI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.48% of NCMI, in contrast to 29.79% held by mutual funds. Shares owned by individuals account for 27.07%. As the largest shareholder in NCMI with 15.79% of the stake, Standard General LP holds 12,932,382 shares worth 12,932,382. A second-largest stockholder of NCMI, The Vanguard Group, Inc., holds 2,845,915 shares, controlling over 3.48% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in NCMI, holding 1,193,964 shares or 1.46% stake. With a 2.26% stake in NCMI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,852,064 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.06% of NCMI stock, is the second-largest Mutual Fund holder. It holds 868,027 shares valued at 1.08 million. Invesco FTSE RAFI US 1500 Small M holds 0.33% of the stake in NCMI, owning 270,351 shares worth 0.34 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NCMI since 4 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NCMI analysts setting a high price target of $5.00 and a low target of $1.50, the average target price over the next 12 months is $3.50. Based on these targets, NCMI could surge 455.56% to reach the target high and rise by 66.67% to reach the target low. Reaching the average price target will result in a growth of 288.89% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NCMI will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of -$0.20 being high and -$0.33 being low. For NCMI, this leads to a yearly average estimate of -$0.25. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. National CineMedia Inc. surprised analysts by $0.05 when it reported -$0.01 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.14. The average estimate for the next quarter is thus -$0.12.

Dividends & Yield:

In terms of dividends, NCMI has a current ratio of $0.12, which is $0.12 over the trailing 12-months, while a dividend of $0.54 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NCMI currently yields $17.68. In the past year, NCMI’s dividend yield has been $17.68, but when looking at the stock over the past five years, its yield has been $11.22. Accordingly, NCMI has a current buyback yield of $1.08. This was $1.08 for the TTM, and it was $0.54 for the past five years.

Summary of Insider Activity:

Insiders traded NCMI stock several times over the past three months with 3 Buys and 4 Sells. In these transactions, 173,996 shares were bought while 65,892 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 371,457 while 107,317 shares were sold.

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