NEW YORK (TheStreet) -- Nielsen Holdings (NLSN) shares are falling 1.3% to $43.20 in trading on Thursday after a financial filing showed that the information and data collection company's chairman sold 30,000 shares of the company's stock.
Company Chairman Arvin Kash sold the shares at an average price of $43.46, netting him $1,303,800 in the sale. Kash still owns 47,000 shares of the company, a stake valued at about $1,828,536.
Separately, the company announced an underwritten secondary offering of 20 million shares with Citigroup acting as the underwriter for the offering. The company will also offer an additional 3 million shares to Citigroup.
TheStreet Ratings team rates NIELSEN HOLDINGS NV as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NIELSEN HOLDINGS NV (NLSN) a BUY. This is driven by several positive factors, 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 strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and notable return on equity. 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:
- NLSN's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 13.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for NIELSEN HOLDINGS NV is rather high; currently it is at 58.78%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.78% trails the industry average.
- Net operating cash flow has increased to $392.00 million or 22.11% when compared to the same quarter last year. Despite an increase in cash flow, NIELSEN HOLDINGS NV's average is still marginally south of the industry average growth rate of 25.17%.
- NIELSEN HOLDINGS NV's earnings per share declined by 31.4% in the most recent quarter compared to the same quarter a year ago. 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, NIELSEN HOLDINGS NV increased its bottom line by earning $1.13 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.13).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Professional Services industry and the overall market, NIELSEN HOLDINGS NV's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: NLSN Ratings Report