Cinemark (NYSE:CNK) Price Target Lowered to $33.00 at Wells Fargo & Company

Key Points

• Cinemark's price target was lowered from $36.00 to $33.00 by Wells Fargo, suggesting a potential upside of 30.03% from the stock's previous close.
• Despite the downgrade, other analysts, including JPMorgan and Benchmark, maintain an "overweight" or "buy" rating for the stock, with targets around $35.00 to $36.00.
• Recently, insiders have sold a total of 84,724 shares of Cinemark stock, indicating a shift in ownership and potential concern over the company's valuation.

Cinemark (NYSE:CNK - Get Free Report) had its price target dropped by equities research analysts at Wells Fargo & Company from $36.00 to $33.00 in a report released on Monday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 30.03% from the company's previous close.

A number of other equities analysts have also commented on the stock. JPMorgan Chase & Co. boosted their price target on shares of Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a research report on Monday, May 5th. Benchmark reissued a "buy" rating and issued a $35.00 target price on shares of Cinemark in a report on Wednesday, July 2nd. Deutsche Bank Aktiengesellschaft assumed coverage on Cinemark in a research report on Thursday, July 10th. They set a "buy" rating and a $36.00 price target on the stock. Barrington Research reaffirmed an "outperform" rating and set a $36.00 price target on shares of Cinemark in a report on Monday, May 5th. Finally, Roth Capital reduced their price objective on Cinemark from $36.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday, July 9th. 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 data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $33.75.

Cinemark Price Performance

Shares of Cinemark stock traded down $0.49 during midday trading on Monday, hitting $25.38. 847,134 shares of the company were exchanged, compared to its average volume of 3,852,555. The firm has a 50 day simple moving average of $30.68 and a 200-day simple moving average of $29.06. 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 firm has a market cap of $2.92 billion, a P/E ratio of 13.90, a PEG ratio of 2.20 and a beta of 1.90. Cinemark has a 52 week low of $23.12 and a 52 week high of $36.28.

Cinemark (NYSE:CNK - Get Free Report) last issued its quarterly earnings data 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). Cinemark had a net margin of 9.13% and a return on equity of 59.16%. The company had revenue of $940.50 million for the quarter, compared to the consensus estimate of $942.14 million. During the same period in the previous year, the business posted $0.32 earnings per share. The firm's revenue was up 28.1% compared to the same quarter last year. Research analysts forecast that Cinemark will post 1.93 earnings per share for the current year.

Insider Buying and Selling

In other Cinemark news, insider Valmir Fernandes sold 25,000 shares of the stock in a transaction dated 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 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 transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Wanda Marie Gierhart sold 52,524 shares of the business's stock in a transaction dated 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 of the company's stock, valued at $3,022,246.50. The trade was a 35.63% decrease in their ownership of the stock. 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 three months. Company insiders own 2.30% of the company's stock.

Institutional Trading of Cinemark

A number of large investors have recently made changes to their positions in the company. Y Intercept Hong Kong Ltd bought a new stake in shares of Cinemark in the second quarter worth about $1,316,000. AlphaQuest LLC increased its stake in Cinemark by 169.6% during the 2nd quarter. AlphaQuest LLC now owns 33,673 shares of the company's stock worth $1,016,000 after purchasing an additional 21,184 shares in the last quarter. Cookson Peirce & Co. Inc. acquired a new stake in Cinemark during the 2nd quarter worth approximately $8,862,000. Praxis Investment Management Inc. bought a new position in Cinemark in the second quarter valued at approximately $200,000. Finally, New York State Teachers Retirement System lifted its stake in Cinemark by 0.9% in the second quarter. New York State Teachers Retirement System now owns 102,292 shares of the company's stock valued at $3,087,000 after buying an additional 904 shares in 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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