NEW YORK (TheStreet) -- Regal Entertainment Group
(RGC) was cut to "hold" from "buy" at Ascendiant Capital and upgraded to "buy" from "hold" at Benchmark Capital.
Ascendiant Capital cited weak third quarter performance box office and a cautious outlook until the 2014 holiday season.
Benchmark Capital changed its rating on a valuation call.
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Shares of Regal Entertainment Group closed at 1.73% to $20.03 yesterday.
Separately, TheStreet Ratings team rates REGAL ENTERTAINMENT GROUP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate REGAL ENTERTAINMENT GROUP (RGC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strongest point has been its expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- REGAL ENTERTAINMENT GROUP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, REGAL ENTERTAINMENT GROUP increased its bottom line by earning $1.00 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $1.00).
- RGC, with its decline in revenue, underperformed when compared the industry average of 12.5%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Media industry average, but is less than that of the S&P 500. The net income has decreased by 6.4% when compared to the same quarter one year ago, dropping from $36.10 million to $33.80 million.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The gross profit margin for REGAL ENTERTAINMENT GROUP is rather low; currently it is at 20.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.38% trails that of the industry average.
- You can view the full analysis from the report here: RGC Ratings Report
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