NCR (NCR) Raised to “Hold” at Zacks Investment Research

NCR (NYSE:NCR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Wednesday.

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.”

A number of other analysts have also recently weighed in on the stock. ValuEngine raised shares of NCR from a “strong sell” rating to a “sell” rating in a research note on Tuesday, August 28th. TheStreet cut shares of NCR from a “b-” rating to a “c-” rating in a research note on Friday, July 27th. JPMorgan Chase & Co. decreased their price objective on shares of NCR from $38.00 to $35.00 and set an “overweight” rating on the stock in a research note on Friday, July 27th. Oppenheimer cut shares of NCR from an “outperform” rating to a “market perform” rating and set a $37.00 price objective on the stock. in a research note on Friday, July 27th. Finally, UBS Group cut shares of NCR from an “outperform” rating to a “market perform” rating in a research note on Friday, July 27th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and two have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $38.83.

NYSE NCR traded up $0.22 on Wednesday, reaching $28.64. The company’s stock had a trading volume of 4,691 shares, compared to its average volume of 898,168. The stock has a market cap of $3.36 billion, a P/E ratio of 8.93, a PEG ratio of 2.73 and a beta of 1.81. NCR has a 52 week low of $26.00 and a 52 week high of $38.68. The company has a quick ratio of 1.01, a current ratio of 1.46 and a debt-to-equity ratio of 7.89.

NCR (NYSE:NCR) last posted its earnings results on Thursday, July 26th. The information technology services provider reported $0.65 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.63 by $0.02. The business had revenue of $1.54 billion for the quarter, compared to analysts’ expectations of $1.59 billion. NCR had a negative net margin of 0.80% and a positive return on equity of 73.82%. The firm’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.80 earnings per share. research analysts anticipate that NCR will post 2.61 earnings per share for the current year.

NCR announced that its Board of Directors has authorized a stock buyback program on Thursday, July 26th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the information technology services provider to purchase up to 6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Institutional investors have recently modified their holdings of the business. Cascade Investment Advisors Inc. grew its stake in NCR by 8.1% during the second quarter. Cascade Investment Advisors Inc. now owns 27,300 shares of the information technology services provider’s stock worth $818,000 after buying an additional 2,040 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in shares of NCR during the second quarter valued at approximately $957,000. First Republic Investment Management Inc. grew its stake in shares of NCR by 164.0% during the second quarter. First Republic Investment Management Inc. now owns 150,024 shares of the information technology services provider’s stock valued at $4,498,000 after purchasing an additional 93,205 shares during the last quarter. Arizona State Retirement System grew its stake in shares of NCR by 2.6% during the second quarter. Arizona State Retirement System now owns 82,133 shares of the information technology services provider’s stock valued at $2,462,000 after purchasing an additional 2,063 shares during the last quarter. Finally, Alps Advisors Inc. bought a new stake in shares of NCR during the second quarter valued at approximately $680,000. 91.29% of the stock is currently owned by hedge funds and other institutional investors.

About NCR

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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