Shares of National CineMedia Inc.
NCMI,
fell 1.3% in midday trading Thursday, after the cinema advertising company declared a 1-for-10 reverse stock split, which will take effect at the Aug. 4 open. The company expects the split to allow it to regain compliance with the Nasdaq’s $1 minimum average closing price requirement. Under the split, which based on current prices would change the stock price to $3.43, each 10 shares a shareholder owns will be converted to one share, with those entitled to receive fractional shares will have their shares rounded. Earlier Thursday, Wedbush analyst Alicia Reese downgraded the stock to neutral from outperform. “As NCM restructures its operations, it continues to see a very difficult advertising environment, almost fully obscuring the recovering box office upside,” Reese wrote in a note to clients. The stock, which has rocketed 226.5% since closing at a record low of 10.5 cents on March 17, 2023, has still plummeted 80.7% over the past 12 months, while the S&P 500
SPX,
has gained 8.7%.
