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National CineMedia Stock Soars Despite Bankruptcy Filing





Date Published:
Author: CML News

Lede

National CineMedia's stock has quadrupled in just two days despite filing for bankruptcy, with investors focused instead on its positive revenue outlook.

 

Summary

  • National CineMedia's stock has more than quadrupled in just two days after filing for bankruptcy, reaching a five-month high on record volume of 320.8 million shares.
  • The surge in stock price follows National CineMedia's upbeat revenue outlook, with the company expecting to report Q4 revenue of $91.7 million, up 44.4% YoY, and operating income growth of 251.3%.
  • Wedbush analyst Alicia Reese stated that National CineMedia is "fundamentally set up to rebound to pre-pandemic levels over time, with its premium and platinum inventory".
  • National CineMedia's bankruptcy filing also disclosed that it experienced increasing demand as brands returned to cinema advertising to target young, diverse, and highly engaged moviegoing audiences.
  • The company's pre-movie show, Noovie, is exclusively presented in 53 theater circuits in the US, including those from AMC, Cinemark Holdings, and Regal Entertainment Group.
  • National CineMedia's bankruptcy filing has not deterred investors, with Wedbush analyst Alicia Reese reiterating her outperform rating and $3.50 stock price target.
  • The company's stock has climbed 127.7% year-to-date but has fallen 78.6% over the past 12 months, while AMC shares have shed 47.2% over the same period and Cinemark's stock has slipped 0.2%.
  • CEO Tom Lesinski said, "We are well-positioned to deliver on this momentum as theater traffic builds back towards normal historical patterns and our inventory utilization increases."

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