Cinemark (NYSE:CNK) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Cinemark has been downgraded by Wall Street Zen from a "hold" to a "sell" rating following its recent earnings report.
• The company's latest earnings missed analyst expectations, reporting $0.63 EPS, which was below the consensus estimate of $0.78.
• Despite the downgrade, a majority of analysts still maintain a "buy" rating for Cinemark, with a consensus target price of $34.00.

Wall Street Zen downgraded shares of Cinemark (NYSE:CNK - Free Report) from a hold rating to a sell rating in a report issued on Saturday.

Other analysts have also recently issued reports about the company. Benchmark reissued a "buy" rating and issued a $35.00 target price on shares of Cinemark in a research report on Wednesday, July 2nd. Deutsche Bank Aktiengesellschaft began coverage on Cinemark in a report on Thursday, July 10th. They issued a "buy" rating and a $36.00 price target for the company. Roth Capital reduced their price target on Cinemark from $36.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, July 9th. B. Riley began coverage on Cinemark in a report on Friday, May 16th. They issued a "neutral" rating and a $35.00 price target for the company. Finally, JPMorgan Chase & Co. raised their price target on Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a report on Monday, May 5th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $33.67.

Cinemark Stock Down 1.6%

Shares of CNK traded down $0.41 during mid-day trading on Friday, reaching $25.28. The company's stock had a trading volume of 1,653,465 shares, compared to its average volume of 3,873,707. Cinemark has a 12-month low of $23.12 and a 12-month high of $36.28. The stock has a market cap of $2.91 billion, a PE ratio of 13.81, a price-to-earnings-growth ratio of 2.20 and a beta of 1.90. The company has a debt-to-equity ratio of 5.11, a current ratio of 0.79 and a quick ratio of 0.76. The company's 50 day moving average is $30.68 and its 200 day moving average is $29.06.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings data on Friday, August 1st. The company reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.15). Cinemark had a net margin of 9.13% and a return on equity of 59.16%. The business had revenue of $940.50 million during the quarter, compared to analysts' expectations of $942.14 million. During the same quarter in the previous year, the company posted $0.32 EPS. The company's revenue was up 28.1% compared to the same quarter last year. Equities analysts anticipate that Cinemark will post 1.93 EPS for the current fiscal year.

Cinemark Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 12th. Stockholders of record on Thursday, May 29th were given a $0.08 dividend. The ex-dividend date of this dividend was Thursday, May 29th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.3%. Cinemark's payout ratio is currently 17.49%.

Insider Activity

In related news, insider Wanda Marie Gierhart sold 52,524 shares of Cinemark stock in a transaction on Friday, June 13th. The stock was sold at an average price of $31.85, for a total value of $1,672,889.40. Following the transaction, the insider owned 94,890 shares in the company, valued at approximately $3,022,246.50. This trade represents a 35.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Valmir Fernandes sold 25,000 shares of Cinemark stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $33.01, for a total value of $825,250.00. Following the completion of the transaction, the insider owned 130,612 shares in the company, valued at $4,311,502.12. The trade was a 16.07% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 84,724 shares of company stock valued at $2,724,435 over the last quarter. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Candlestick Capital Management LP increased its position in shares of Cinemark by 48.1% during the fourth quarter. Candlestick Capital Management LP now owns 4,931,618 shares of the company's stock worth $152,782,000 after acquiring an additional 1,601,537 shares during the last quarter. Assenagon Asset Management S.A. increased its position in shares of Cinemark by 106.9% during the second quarter. Assenagon Asset Management S.A. now owns 2,589,372 shares of the company's stock worth $78,147,000 after acquiring an additional 1,338,153 shares during the last quarter. Nuveen LLC purchased a new stake in shares of Cinemark during the first quarter worth about $32,297,000. Simcoe Capital Management LLC purchased a new stake in shares of Cinemark during the fourth quarter worth about $37,763,000. Finally, Wellington Management Group LLP increased its position in shares of Cinemark by 12.9% during the first quarter. Wellington Management Group LLP now owns 9,346,856 shares of the company's stock worth $232,643,000 after acquiring an additional 1,066,225 shares during the last quarter.

About Cinemark

Cinemark Holdings, Inc, together with its subsidiaries, engages in the motion picture exhibition business. As of February 16, 2024, it operated 501 theatres with 5,719 screens in 42 states and 13 countries in South and Central America. Cinemark Holdings, Inc was founded in 1984 and is headquartered in Plano, Texas.