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OUTR $52

OUTR target price
52.00
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Outerwall Inc.
Formerly called
Coinstar, Inc. (1991–2013)
Type
Private
Industry Entertainment, DVD Rental, Coin Counting Machines, Mobile Product Recycling
Founded February 1991; 26 years ago (1991-02) (as Coinstar, Inc.)
Bellevue, Washington, U.S.
Founder Jens Molbak
Dan Gerrity
Headquarters Bellevue, Washington, U.S.
Area served
North America & Europe
Services Redbox DVD Kiosks, Coin Counting Services, Mobile Device Recycling, E-Payment Services
Revenue US$ 1.85 billion (2011)
Operating income
US$ 209 million (2011)
Net income
US$ 104 million (2011)
Total assets US$ 1.48 billion (2011)
Total equity US$ 531 million (2011)
Owner Apollo Global Management
(2016-present)
Number of employees
1,800 (2008)
Subsidiaries Redbox
Coinstar
EcoATM
Gazelle
Website www.outerwall.com

Outerwall Inc. was an American company with a network of movie and video game rental kiosks as well as coin-cashing machines. On 27 September 2016, Apollo Global Management, LLC acquired Outerwall, Inc. for $52.00 per share in cash. After the acquisition, former components of Outerwall, Redbox, Coinstar, and ecoATM (which includes Gazelle) became separate business entities.

The firm's original focus was the conversion of loose change into paper currency, donations and gift cards via coin counter kiosks. Outerwall operates Coinstar machines which deduct a fee for conversion of coins to banknotes, and Coinstar Exchange for gift cards. The company also owns the Redbox DVD rental service.

Outerwall's kiosks are in the front of stores (between the cash registers and the exit/entrance). Outerwall has more than 60,000 kiosks including a variety of services in the US, UK, Ireland, Canada, Puerto Rico and Mexico.

Outerwall also produces machines that provide prepaid credit cards, cellular phone cards, tickets to concerts, and e-payment kiosks. It is also developing kiosks for pharmaceutical dispensing.

On July 2, 2013, Outerwall started trading on the NASDAQ as OUTR, changing its name from Coinstar. As of 2016, It now owned by Apollo.

The company was founded in 1991 as Coinstar, Inc. and is headquartered in Bellevue, Washington.

Outerwall cooperated with the US Mint in the introduction of the Golden Dollar at the beginning of the millennium and encouraged people to use coins rather than notes.

In February 2009, Coinstar purchased all remaining shares of DVD rental kiosk company Redbox for $175 million from McDonald's Corporation, making Outerwall the sole owner. Prior to this, Coinstar and McDonald's each owned 47% of Redbox shares with various other parties owning the remaining 6%.

On June 28, 2013, shareholders voted to change the company name from Coinstar to Outerwall.

On July 2, 2013, Coinstar acquired mobile phone recycling kiosk operators ecoATM, for $350 million (not including debt) and the company name was changed to Outerwall.

On October 7, 2013, Barry Rosenstein's hedge fund JANA Partners filed a 13D on shares of Outerwall (OUTR) and disclosed a new 13.5% ownership stake in OUTR with 3,777,995 shares. The activist 13D filing indicated that JANA expected to talk with management—in particular, that they wanted to focus on "a review of strategic alternatives including exploring a strategic transaction, selling or discontinuing certain businesses, or pursuing a sale." Subsequently, on December 9, 2013, Outerwall's former CEO, J. Scott Di Valerio, announced it would discontinue three new ventures and lay off 8.5% of its workforce.

In late September 2016, Outerwall announced CEO Erik E. Prusch would be leaving the company as part of the company's acquisition by Apollo Global Management. The deal, placed at a cash value of $895 million, makes Outerwall a privately-held company.

The typical Coinstar coin-cashing kiosk is green and the size of a large vending machine. They are located at grocery stores, drug stores, larger merchants, banks or other retail locations. The coin-counting service is available in the US (including Puerto Rico), Canada, Ireland and the UK.

To process coins, loose change is poured into the machine. In the United States, the machine accepts all denominations of coins from one-cent coins to one-dollar coins, its only restriction being 1943 steel cents and Eisenhower Dollars. When the machine finishes counting coins it issues a scrip, called a voucher, which the user can redeem at the place of business providing the coin-counting service at face value for currency. The same mode of operation and redemption is provided on those Coinstar machines situated in Great Britain, Ireland, Canada, and Puerto Rico.

The coin-counting processing fee, deducted from the total once coins have been counted, is 11.9% in the USA, 11.9% in Canada, 8.7% in Ireland and 6.8% in the UK. Some machines may offer a lower rate; in this case the store hosting the machine has subsidised the rate.

A newer service enables users to use their coins to buy a gift card from merchants without the usual fee ("no fee") — including such retailers as Starbucks, Amazon.com, Banana Republic, Gap, Regal Entertainment Group, Old Navy, iTunes, J.C. Penney, CVS Pharmacy and Overstock.com. Select grocery retailers, including SuperValu and Stop & Shop are also participating in the "no fee" offers. If the user chooses the fee-free option, the machine issues a plastic gift card or, in the case of online merchants like Amazon.com, a voucher with a redemption code.

US and UK users also have the option of donating their change to a selected charity. By 2006, Outerwall has raised more than $20 million for charities including the American Red Cross Disaster Relief fund, Leukemia and Lymphoma Society and UNICEF's Trick or Treat program.

Outerwall has processed more than 350 billion coins in its nearly two decades of operation, with an average transaction amount of about $38. The largest single transaction was $13,000 in pennies from a man in Alabama.

Many Coinstar machines in the US also sell prepaid products such as Green-Dot preloaded MasterCard. In the UK, gift cards are not available.

Outerwall has become a multi-national provider of services for the front end of retail stores. Services provided include coin counting, bulk vending, prepaid products (gift cards), money transfer and automated DVD rentals (via Redbox). In September 2009, Outerwall sold its entertainment business, which included skill cranes and bulk vending, to National Entertainment Network.

Outerwall will also be coming out with additional services, including the ability to deposit coins directly into a personal bank account. A specific time frame for availability of this service has not been announced.

In some sections of the U.S., regional banks have begun offering free coin-counting services in the amount of a gift card. Refunds are often given in cash rather than in the form of a gift card. In some cases, it is not even necessary for the customer to have an account at the bank; the free service is offered as a way to attract new business from individuals who are not current account holders. TD Bank's "Penny Arcade" coin counters were free and available to both customers and non-customers in many branches, but as of November 2010, the bank charges a 6% fee for non-customers to use the machine. In May 2016, in the wake of a New York state lawsuit over accuracy, TD Bank said that it had suspended use of its Penny Arcade machines and would be removing them from all of its locations.

On May 9, 2006, Outerwall sued rival Coin X change over a patent dispute around the use of voucher-issuing machines, remote reporting of the coin machines' status and anti-counterfeiting technology for printed vouchers.

To generate publicity, Outerwall offered to cash in over 1.3 million pennies collected over four decades by Flomaton, Alabama resident Edmond Knowles after Knowles's bank refused to cash them in. The armored truck sent by Outerwall to Knowles's home sank into the mud in his yard after being loaded with the 4.5-ton collection, and needed to be rescued by a tow truck.

On March 14, 2008, an employee was arrested for stealing $441,000 from Coinstar machines in Washington, Oregon and California. The employee was accused of illegally accessing the Coinstar machine's cash boxes ahead of armored car pickups.

On March 25, 2008, Roy Disney used his Shamrock Activist Value Fund of Burbank to ask for changes in Outerwall's corporate governance.

On June 28, 2013, shareholders voted to change the company name from Coinstar to Outerwall.

On July 2, 2013, the company traded its first day as Outerwall, Inc., with its new ticker being OUTR.

Q reports

Period Date Adjusted Actuals EPS GAAP EPS

Ratings

2016-05-05 Reiterated Rating B. Riley Buy $58.00
2016-04-30 Reiterated Rating B. Riley Buy $50.00 to $58.00
2016-04-25 Reiterated Rating B. Riley Buy $50.00
2016-04-21 Reiterated Rating Wedbush Outperform $40.00 to $45.00
2016-04-19 Reiterated Rating Roth Capital Hold $35.00
2016-03-28 Reiterated Rating Roth Capital Hold
2016-03-20 Reiterated Rating B. Riley Buy $50.00
2016-03-15 Upgrade Roth Capital Sell to Neutral $23.50 to $35.00
2016-03-15 Reiterated Rating B. Riley Buy $42.00 to $50.00
2016-03-15 Reiterated Rating Wedbush Buy $40.00
2016-03-15 Boost Price Target Craig Hallum Buy $48.00
2016-02-19 Reiterated Rating Pacific Crest Sell
2016-02-11 Reiterated Rating B. Riley Buy $42.00
2016-02-06 Reiterated Rating B. Riley Buy $58.00 to $42.00
2016-02-05 Lower Price Target Wedbush $59.00 to $40.00
2016-02-05 Lower Price Target JPMorgan Chase & Co. Underweight $48.00 to $29.00
2016-02-05 Reiterated Rating Roth Capital Neutral to Sell $23.50
2016-02-05 Downgrade Piper Jaffray Overweight to Neutral $57.00 to $32.00
2016-02-05 Downgrade Piper Jaffray Cos. Overweight to Neutral $57.00 to $32.00
2016-02-01 Lower Price Target B. Riley Buy $58.00 to $42.00
2016-02-01 Downgrade Roth Capital Buy to Neutral $37.00
2016-01-28 Reiterated Rating Wedbush Outperform $59.00
2016-01-27 Reiterated Rating B. Riley Buy $58.00
2016-01-04 Reiterated Rating Roth Capital Buy $61.50
2015-12-13 Upgrade B. Riley Buy $58.00
2015-12-08 Reiterated Rating Piper Jaffray Overweight $88.00 to $57.00
2015-12-08 Lower Price Target JPMorgan Chase & Co. Underweight $59.00 to $48.00
2015-12-08 Boost Price Target Wedbush Outperform $59.00 to $100.00
2015-12-08 Lower Price Target Roth Capital Buy $80.00 to $61.50
2015-12-08 Upgrade B. Riley Neutral to Buy $70.00
2015-11-13 Initiated Coverage Roth Capital Buy $30.00 to $80.00
2015-11-04 Reiterated Rating B. Riley Neutral $70.00
2015-10-30 Reiterated Rating B. Riley Neutral $70.00
2015-10-30 Reiterated Rating Wedbush Buy $100.00
2015-10-23 Reiterated Rating Wedbush Buy $100.00
2015-10-20 Reiterated Rating B. Riley Neutral $70.00
2015-10-15 Reiterated Rating B. Riley Neutral $70.00
2015-09-30 Reiterated Rating Northland Securities Buy
2015-09-29 Lower Price Target Northland Securities Outperform $88.00 to $85.00
2015-08-01 Reiterated Rating B. Riley Neutral $70.00
2015-07-27 Reiterated Rating B. Riley Neutral $77.50
2015-07-27 Reiterated Rating Wedbush Outperform $92.00
2015-07-24 Reiterated Rating Piper Jaffray Buy $76.00 to $92.00
2015-07-08 Reiterated Rating Northland Securities Buy
2015-07-07 Boost Price Target Northland Securities Outperform $84.00 to $88.00
2015-05-11 Downgrade First Analysis Overweight to Equal Weight
2015-05-08 Set Price Target Wedbush Buy $92.00
2015-05-08 Boost Price Target JPMorgan Chase & Co. Underweight $49.00 to $58.00
2015-05-08 Boost Price Target Northland Securities Outperform $79.00 to $84.00
2015-05-06 Reiterated Rating B. Riley Neutral $61.00 to $74.00
2015-05-04 Reiterated Rating Wedbush Outperform $82.00
2015-04-07 Reiterated Rating B. Riley Neutral $61.00
2015-03-31 Reiterated Rating B. Riley Neutral $61.00
2015-02-06 Boost Price Target JPMorgan Chase & Co. Underweight $48.00 to $49.00
2015-02-06 Reiterated Rating B. Riley Neutral $57.00 to $53.00
2015-01-21 Lower Price Target Northland Securities Outperform $94.00 to $79.00
2015-01-21 Lower Price Target B. Riley Neutral $62.00 to $57.00
2015-01-20 Reiterated Rating Dougherty & Co Hold
2015-01-06 Reiterated Rating Northland Securities Buy $82.00 to $94.00
2014-11-25 Reiterated B. Riley & Co. Neutral $49 to $62
2014-11-25 Boost Price Target B. Riley Neutral $49.00 to $62.00
2014-11-24 Upgrade Northland Capital Market Perform to Outperform
2014-11-24 Upgrade Northland Securities Market Perform to Outperform $62.00 to $82.00
2014-10-13 Upgrade B. Riley & Co. Sell to Neutral $47 to $47
2014-10-13 Upgrade B. Riley Sell to Neutral $47.00
2014-09-22 Downgrade B. Riley & Co. Neutral to Sell $54 to $47
2014-09-22 Downgrade B. Riley Neutral to Sell $54.00 to $47.00
2014-09-03 Reiterated B. Riley & Co. Neutral $58 to $54
2014-09-03 Lower Price Target B. Riley Neutral $58.00 to $54.00
2014-08-01 Reiterated Rating JPMorgan Chase & Co. Underweight $49.00 to $48.00
2014-08-01 Reiterated Rating B. Riley Neutral $64.00 to $58.00
2014-07-30 Lower Price Target JPMorgan Chase & Co. $64.00 to $49.00
2014-07-28 Lower Price Target B. Riley $76.00 to $64.00
2014-06-18 Downgrade B. Riley & Co. Buy to Neutral $100 to $76
2014-06-18 Downgrade B. Riley Buy to Neutral $100.00 to $76.00
2014-06-17 Downgrade B. Riley Buy to Neutral $100.00 to $76.00
2014-03-14 Boost Price Target JPMorgan Chase & Co. $63.50 to $64.00
2014-02-07 Reiterated B. Riley & Co. Buy $103 to $100
2014-02-07 Boost Price Target Benchmark Co. $75.00 to $82.00
2014-02-07 Lower Price Target B. Riley Buy $103.00 to $100.00
2014-02-07 Downgrade Northland Securities Outperform to Market Perform
2014-01-06 Upgrade Ned Davis Research Neutral to Buy
2013-12-11 Reiterated Rating Northland Securities Positive
2013-12-11 Boost Price Target B. Riley Buy $95.00 to $103.00
2013-12-10 Boost Price Target Wedbush $82.00
2013-11-13 Reiterated Northland Capital Outperform $75 to $78
2013-11-13 Boost Price Target Northland Securities Outperform $75.00 to $78.00
2013-10-28 Boost Price Target Benchmark Co. Buy $70.00 to $75.00
2013-10-25 Boost Price Target Northland Securities Outperform $62.00 to $75.00
2013-10-22 Reiterated Rating Compass Point Neutral $50.00 to $60.00
2013-09-17 Lower Price Target Compass Point Neutral $55.00 to $50.00
2013-09-17 Lower Price Target Northland Securities Outperform $81.00 to $62.00
2013-09-17 Lower Price Target JPMorgan Chase & Co. Underweight $50.50 to $49.00
2013-09-09 Downgrade Pacific Crest Sector Perform to Underperform
2016-05-05 Reiterated Rating B. Riley Buy $58.00
2016-04-30 Reiterated Rating B. Riley Buy $50.00 to $58.00
2016-04-25 Reiterated Rating B. Riley Buy $50.00
2016-04-21 Reiterated Rating Wedbush Outperform $40.00 to $45.00
2016-04-19 Reiterated Rating Roth Capital Hold $35.00

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Funds

In OUTR 3 funds of 2213 total. Show all

Fund name Ticker shares
RUSSELL FRANK CO/ 41388
VTL Associates, LLC 20076
BAIRD ROBERT W & CO INC /WI/ 6262

Major Shareholders

Name Relationship Total Shares Holding stocks
JANA PARTNERS LLC 8.67%  (1722041) CCIX / CVEO / HDS / OIS / OUTR / SVU / TMH / TWI /
DAVIS PAUL D Chief Executive Officer 0.76%  (149966) BREW / OUTR /
PRUSCH ERIK Chief Executive Officer 0.46%  (91060) OUTR /
Di Valerio J Scott Chief Financial Officer 0.29%  (58097) OUTR / SALE /
Engaged Capital LLC 0.28%  (56552) MX / OUTR / RCII /
Smith Galen C Chief Financial Officer 0.24%  (46795) OUTR /
RENCH DONALD R Chief Legal Officer 0.22%  (43405) OUTR /
KAPLAN GREGG A. President & COO 0.15%  (29534) OUTR /
BEVIER DEBORAH L 0.10%  (19026) FFIV / OUTR /
Gaherity James President, Coinstar 0.09%  (18493) OUTR /
SZNEWAJS ROBERT D 0.09%  (18300) BANC / OUTR /
Horak Mark President, Redbox 0.09%  (17361) OUTR /
Stipp Maria D President, ecoATM 0.07%  (14650) OUTR /
CHAN NELSON C 0.06%  (12473) AFFX / DECK / OUTR / SCKT / SYNA /
Saunders Anne President of Redbox 0.05%  (10141) NLS / OUTR /
ESKENAZY DAVID M 0.05%  (9751) OUTR /
Maquera David D. President, ecoATM 0.04%  (7697) OUTR /
Krug Dana Senior VP, Sales 0.04%  (7696) OUTR /
SKINNER MICHAEL J President, COIN 0.04%  (7418) OUTR /
Denzel Nora 0.04%  (7413) AMD / OUTR / OVRL / SABA /
WOODARD RONALD B 0.04%  (7084) AIR / OUTR /
Landsbaum Ross 0.03%  (5716) OUTR / RLOC /
Larsen Tad K Chief Accounting Officer 0.02%  (3849) OUTR /
Osvaldik Peter Chief Accounting Officer 0.02%  (3340) OUTR / TMUS /
Pinckney James S Ch. Strat., Sales & Svcs Off. 0.02%  (3216) OUTR /
Kist Jeffrey W Interim CAO 0.02%  (3137) OUTR /
BROWN JEFFREY J 0.01%  (2835) MED / OUTR / RCAP / RCII /
AHITOV ARIK 0.01%  (1229) OUTR /