It’s not a good day for shareholders of Outerwall Inc (NASDAQ:OUTR) as the company has just released lower than expected guidance for the full year. Additionally, they have also announced that the leader of their Redbox unit, Mark Horak, has just resigned. Outerwall CEO Erik Prusch will be taking over as the head of the Redbox unit until another leader can be named.
Outerwall Inc (NASDAQ:OUTR) has lowered their guidance on Redbox revenue to $1.75 – 1.765 billion, down from $1.79 – $1.815 billion, while also lowering their core EPS from continuing operations to $7.65 – $8.15. This figure is drastically down from the previous guidance of $8.82 – $9.52. The stock decreased 1.96% or $1.16 during the last trading session, hitting $58.06. Approximately 393,606 shares traded hands. OUTR shares have declined 12.32% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 11.24%.
From a total of 3 analysts covering Outerwall (NASDAQ:OUTR) stock, 3 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $85 while the lowest target price is $72. The mean of all analyst targets is $79.25 which is 36.50% above today’s ($58.06) stock price. Outerwall was the topic of 4 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. Roth Capital initiated shares on November 13 with a “Buy” rating. Northland Capital maintained OUTR stock in a recent report from September 29 with a “Outperform” rating.
The institutional sentiment decreased to 0.89 in Q2 2015. It’s down 0.26, from 1.15 in 2015Q1. The ratio is negative, as 29 funds sold all their Outerwall Inc shares they owned while 105 reduced their positions. 41 funds bought stakes while 78 increased their total positions. Institutions now own 21.80 million shares which is 6.34% less than the previous share count of 23.27 million in 2015Q1.
Arlington Value Capital Llc holds 11.71% of its total portfolio in Outerwall Inc, equating to 1.10 million shares. Stonerise Capital Management Llc owns 320,000 shares representing 11.26% of their total US portfolio. Moreover, Fine Capital Partners L.P. has 5.67% of their total portfolio invested in the company, equating to 921,158 shares. The California-based Park West Asset Management Llc has a total of 4.42% of their portfolio invested in the stock. Kestrel Investment Management Corp, a California-based fund reported 158,025 shares owned.
Outerwall Inc. is a provider of automated retail solutions. The company has a market cap of $1.02 billion. The Company’s business divisions include The Redbox, Coinstar and New Ventures. It has 13.89 P/E ratio. The Redbox segment is focused on the entertainment consumer sector, where clients can rent or purchase movies and video games from self-service kiosks.