Zacks Investment Research Lowers NCR (NYSE:NCR) to Sell

NCR (NYSE:NCR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday, Zacks.com reports. They currently have a $34.00 target price on the information technology services provider’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 4.87% from the company’s current price.

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. cut NCR from an “overweight” rating to a “neutral” rating and set a $32.00 price target for the company. in a report on Monday, March 25th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. NCR has a consensus rating of “Hold” and an average price target of $35.29.

NYSE NCR opened at $32.42 on Wednesday. The company has a market capitalization of $3.89 billion, a price-to-earnings ratio of 12.37, a P/E/G ratio of 2.94 and a beta of 1.72. NCR has a fifty-two week low of $20.93 and a fifty-two week high of $33.18. The company has a debt-to-equity ratio of 7.31, a current ratio of 1.27 and a quick ratio of 0.90.

NCR (NYSE:NCR) last released its quarterly earnings results on Tuesday, May 7th. The information technology services provider reported $0.48 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.48. The firm had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.52 billion. NCR had a positive return on equity of 91.22% and a negative net margin of 1.09%. NCR’s quarterly revenue was up 1.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.56 EPS. As a group, sell-side analysts forecast that NCR will post 2.78 earnings per share for the current fiscal year.

In other news, SVP Adrian Button sold 4,639 shares of the stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $28.61, for a total transaction of $132,721.79. Following the completion of the transaction, the senior vice president now directly owns 24,357 shares in the company, valued at approximately $696,853.77. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Daniel William Campbell sold 31,029 shares of the stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $29.98, for a total value of $930,249.42. The disclosure for this sale can be found here. In the last 90 days, insiders sold 41,098 shares of company stock valued at $1,218,161. 1.00% of the stock is owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in NCR. Oregon Public Employees Retirement Fund boosted its stake in shares of NCR by 2,208.0% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 1,077,605 shares of the information technology services provider’s stock valued at $47,000 after buying an additional 1,030,915 shares during the last quarter. River Road Asset Management LLC boosted its stake in shares of NCR by 87.2% during the 4th quarter. River Road Asset Management LLC now owns 1,568,690 shares of the information technology services provider’s stock valued at $36,205,000 after buying an additional 730,690 shares during the last quarter. Segall Bryant & Hamill LLC boosted its stake in shares of NCR by 82.6% during the 4th quarter. Segall Bryant & Hamill LLC now owns 1,164,829 shares of the information technology services provider’s stock valued at $26,884,000 after buying an additional 526,928 shares during the last quarter. Norges Bank purchased a new position in shares of NCR during the 4th quarter valued at approximately $11,727,000. Finally, Renaissance Technologies LLC purchased a new position in shares of NCR during the 1st quarter valued at approximately $10,493,000. Institutional investors own 94.72% of the company’s stock.

NCR Company Profile

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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