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

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.

Cinemark (NYSE:CNK - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other research firms also recently weighed in on CNK. JPMorgan Chase & Co. increased their price objective on Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a report on Monday, May 5th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cinemark in a research note on Thursday, July 10th. They set a "buy" rating and a $36.00 price target for the company. Benchmark restated a "buy" rating and issued a $35.00 price objective on shares of Cinemark in a research note on Wednesday, July 2nd. Barrington Research reiterated an "outperform" rating and set a $36.00 target price on shares of Cinemark in a research note on Monday, May 5th. Finally, Roth Capital dropped their price target on Cinemark from $36.00 to $35.00 and set a "buy" rating on the stock in a research report on Wednesday, July 9th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $34.00.

Cinemark Stock Performance

NYSE CNK opened at $25.82 on Friday. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.79 and a quick ratio of 0.76. Cinemark has a 1 year low of $23.12 and a 1 year high of $36.28. The company has a market capitalization of $2.97 billion, a PE ratio of 16.99, a P/E/G ratio of 2.28 and a beta of 1.88. The company has a fifty day moving average of $30.68 and a two-hundred day moving average of $29.06.

Cinemark (NYSE:CNK - Get Free Report) last announced its earnings results on Friday, August 1st. The company reported $0.63 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.78 by ($0.15). The firm had revenue of $940.50 million during the quarter, compared to analyst estimates of $942.14 million. Cinemark had a net margin of 8.17% and a return on equity of 51.68%. The firm's revenue for the quarter was up 28.1% compared to the same quarter last year. During the same period last year, the company earned $0.32 earnings per share. As a group, analysts expect that Cinemark will post 1.93 earnings per share for the current year.

Insider Transactions at Cinemark

In related news, EVP Melissa Thomas sold 7,200 shares of the company's stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $31.43, for a total value of $226,296.00. Following the sale, the executive vice president owned 210,968 shares in the company, valued at $6,630,724.24. This represents a 3.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Valmir Fernandes sold 25,000 shares of Cinemark stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $33.01, for a total value of $825,250.00. Following the transaction, the insider directly owned 130,612 shares of the company's stock, valued at approximately $4,311,502.12. This represents a 16.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 84,724 shares of company stock valued at $2,724,435 in the last quarter. 2.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cinemark

Large investors have recently added to or reduced their stakes in the business. QRG Capital Management Inc. raised its position in shares of Cinemark by 3.2% in the second quarter. QRG Capital Management Inc. now owns 16,894 shares of the company's stock valued at $510,000 after buying an additional 521 shares during the last quarter. LPL Financial LLC raised its holdings in Cinemark by 6.8% in the 4th quarter. LPL Financial LLC now owns 8,722 shares of the company's stock valued at $270,000 after acquiring an additional 556 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Cinemark by 3.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 16,270 shares of the company's stock worth $504,000 after purchasing an additional 591 shares during the period. Summit Investment Advisors Inc. lifted its stake in shares of Cinemark by 5.7% during the 4th quarter. Summit Investment Advisors Inc. now owns 11,546 shares of the company's stock worth $358,000 after purchasing an additional 618 shares during the period. Finally, Quarry LP boosted its holdings in shares of Cinemark by 41.8% during the fourth quarter. Quarry LP now owns 2,114 shares of the company's stock worth $65,000 after purchasing an additional 623 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.

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