Weekly Research Analysts’ Ratings Changes for NCR (NCR)

A number of firms have modified their ratings and price targets on shares of NCR (NYSE: NCR) recently:

  • 11/14/2018 – NCR had its “hold” rating reaffirmed by analysts at Zacks Investment Research. According to Zacks, “NCR's Q3 results benefitted from continued momentum in managed service offerings and growth in Cloud revenues. The company’s focus on growth of cloud segment and modernization of its Services business are proving to be worthy. The recent partnerships with third party partners Jabil and CEVA were positives in the third quarter and is expected to continue to drive top line going forward. However, highly leveraged balance sheet and competition from Diebold and HP, remains concerns. Seasonal nature of the business leads to fluctuation in cash flows, making it difficult for NCR to determine working capital requirements. These factors make forecasting difficult and may negatively affect the company’s ability to project financial results accurately. Moreover, declining trend in its Hardware segment is a headwind. Shares underperformed the industry in the year to date period.”
  • 11/1/2018 – NCR was upgraded by analysts at ValuEngine from a “sell” rating to a “hold” rating.
  • 10/31/2018 – NCR had its price target lowered by analysts at Morgan Stanley from $32.00 to $30.00. They now have an “equal weight” rating on the stock.
  • 10/30/2018 – NCR had its “hold” rating reaffirmed by analysts at Oppenheimer Holdings Inc..
  • 10/23/2018 – NCR was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “NCR's highly leveraged balance sheet and competition from Diebold and HP, remains concerns. We also remain slightly cautious about the weakness in the ATM business and decline in Software License. The decline in ATM revenues is mainly due to supply constraints owing to the company’s transition from 30 Series to 80 Series product line. Seasonal nature of the business leads to fluctuation in cash flows, making it difficult for NCR to determine working capital requirements. These factors make forecasting difficult and may negatively affect the company’s ability to project financial results accurately. Shares underperformed the industry in the year to date period. Nonetheless, NCR’s focus on growth of cloud segment and modernization of its Services business are proving to be worthy. Estimates have been stable lately ahead of the company’s Q3 earnings release.”
  • 10/22/2018 – NCR was upgraded by analysts at ValuEngine from a “strong sell” rating to a “sell” rating.
  • 10/12/2018 – NCR was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.
  • 9/26/2018 – NCR was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “NCR’s focus on growth of cloud segment and modernization of its Services business are proving to be worthy. It is also focused on its strategy related to hardware manufacturing, aimed at reducing costs and headwinds from hardware cycles. Moreover, continuous product launches, growing popularity of its self-service offerings and synergies from acquisitions are catalysts. Estimates have been stable lately ahead of the company’s Q3 earnings release. NCR has positive record of earnings surprises in recent quarters. Nonetheless, we remain slightly cautious about the weakness in the ATM business and decline in Software License. The decline in ATM revenues is mainly due to supply constraints owing to the company’s transition from 30 Series to 80 Series product line. Additionally, NCR's highly leveraged balance sheet and competition from Diebold and HP, remains concerns. Shares underperformed the industry in the year to date period.”

Shares of NCR stock opened at $26.29 on Monday. NCR Co. has a one year low of $23.41 and a one year high of $38.68. The stock has a market cap of $3.11 billion, a P/E ratio of 8.22, a PEG ratio of 2.51 and a beta of 1.73. The company has a current ratio of 1.42, a quick ratio of 0.97 and a debt-to-equity ratio of 6.43.

NCR (NYSE:NCR) last announced its quarterly earnings data on Tuesday, October 30th. The information technology services provider reported $0.58 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.04. NCR had a negative net margin of 1.33% and a positive return on equity of 75.44%. The company had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the firm posted $0.93 EPS. NCR’s revenue for the quarter was down 6.8% on a year-over-year basis. On average, analysts forecast that NCR Co. will post 2.62 EPS for the current year.

A number of hedge funds have recently made changes to their positions in NCR. Fuller & Thaler Asset Management Inc. grew its position in NCR by 105,618.0% during the 2nd quarter. Fuller & Thaler Asset Management Inc. now owns 2,537,231 shares of the information technology services provider’s stock valued at $76,066,000 after purchasing an additional 2,534,831 shares during the last quarter. Victory Capital Management Inc. lifted its stake in NCR by 94.0% during the 3rd quarter. Victory Capital Management Inc. now owns 3,098,206 shares of the information technology services provider’s stock valued at $88,019,000 after acquiring an additional 1,501,532 shares during the period. Janus Henderson Group PLC lifted its stake in NCR by 48.0% during the 2nd quarter. Janus Henderson Group PLC now owns 4,265,082 shares of the information technology services provider’s stock valued at $127,867,000 after acquiring an additional 1,383,437 shares during the period. Alliancebernstein L.P. lifted its stake in NCR by 15.5% during the 3rd quarter. Alliancebernstein L.P. now owns 6,814,174 shares of the information technology services provider’s stock valued at $193,591,000 after acquiring an additional 913,020 shares during the period. Finally, River Road Asset Management LLC bought a new position in NCR during the 2nd quarter valued at about $24,713,000. 92.13% of the stock is currently owned by institutional investors.

NCR Corporation provides omni-channel technology solutions for businesses to connect, interact, and transact with their customers worldwide. The company's Software segment offers industry-based software platforms and 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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