NCR (NYSE:NCR) Downgraded by Zacks Investment Research to “Sell”

NCR (NYSE:NCR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. They currently have a $34.00 price target on the information technology services provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 5.33% from the company’s previous close.

According to Zacks, “NCR’s first-quarter 2019 results were hurt by foreign exchange headwinds, as significant revenues are generated from outside the United States. The company is affected by a highly leveraged balance sheet and intense competition. Growing competition from companies like Diebold in ATM manufacturing, and Fidelity in financial services is a major concern. However, significant benefits from JetPay acquisition are boosting the top line. NCR continues to focus on cost saving initiatives, which are expected to result in considerable savings in 2019. Moreover, with a diverse self-service portfolio and associated benefits (cost and time savings), we believe that it is poised for solid growth. Shares have outperformed the industry year to date.”

Separately, JPMorgan Chase & Co. lowered shares of NCR from an “overweight” rating to a “neutral” rating and set a $32.00 target price on the stock. in a research report on Monday, March 25th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $35.29.

NYSE:NCR traded down $0.46 during midday trading on Wednesday, reaching $32.28. The stock had a trading volume of 22,460 shares, compared to its average volume of 897,988. NCR has a 12-month low of $20.93 and a 12-month high of $33.00. The company has a debt-to-equity ratio of 7.31, a current ratio of 1.27 and a quick ratio of 0.90. The firm has a market cap of $3.81 billion, a price-to-earnings ratio of 12.34, a price-to-earnings-growth ratio of 2.85 and a beta of 1.71.

NCR (NYSE:NCR) last posted its quarterly earnings data on Tuesday, May 7th. The information technology services provider reported $0.48 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.48. NCR had a negative net margin of 1.09% and a positive return on equity of 91.22%. The firm had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.52 billion. During the same period last year, the firm posted $0.56 EPS. NCR’s quarterly revenue was up 1.3% on a year-over-year basis. As a group, analysts expect that NCR will post 2.78 earnings per share for the current fiscal year.

In other news, EVP J. Robert Ciminera sold 5,430 shares of NCR stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $28.58, for a total transaction of $155,189.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Adrian Button sold 4,639 shares of NCR stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $28.61, for a total value of $132,721.79. Following the transaction, the senior vice president now directly owns 24,357 shares of the company’s stock, valued at approximately $696,853.77. The disclosure for this sale can be found here. Insiders have sold a total of 41,098 shares of company stock worth $1,218,161 over the last 90 days. Insiders own 1.00% of the company’s stock.

Large investors have recently added to or reduced their stakes in the company. Marshall Wace North America L.P. raised its stake in shares of NCR by 3,833.6% in the 1st quarter. Marshall Wace North America L.P. now owns 127,841 shares of the information technology services provider’s stock valued at $3,488,000 after acquiring an additional 124,591 shares in the last quarter. Schonfeld Strategic Advisors LLC acquired a new stake in shares of NCR during the 1st quarter worth approximately $1,504,000. Man Group plc grew its holdings in shares of NCR by 3.0% during the 1st quarter. Man Group plc now owns 854,800 shares of the information technology services provider’s stock worth $23,327,000 after purchasing an additional 24,747 shares in the last quarter. Macquarie Group Ltd. lifted its position in shares of NCR by 1.1% during the 1st quarter. Macquarie Group Ltd. now owns 1,741,629 shares of the information technology services provider’s stock worth $47,529,000 after buying an additional 18,837 shares during the period. Finally, MetLife Investment Advisors LLC lifted its position in shares of NCR by 0.6% during the 1st quarter. MetLife Investment Advisors LLC now owns 72,503 shares of the information technology services provider’s stock worth $1,979,000 after buying an additional 429 shares during the period. 94.72% of the stock is owned by institutional investors and hedge funds.

About NCR

NCR Corporation provides software and services for the financial, retail, hospitality, telecommunications, and technology industries worldwide. The company's Software segment offers industry-based software platforms, applications, and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry.

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