Cinemark (NYSE:CNK) Rating Lowered to Hold at Wells Fargo & Company

Key Points

• Wells Fargo downgraded Cinemark from strong-buy to hold in a Thursday report, signaling a more cautious near-term view on the stock.
• Despite the downgrade, analyst sentiment remains mixed-to-positive overall: Cinemark still carries a Moderate Buy consensus with an average price target of $34.58, and several firms have recently maintained or raised their targets.
• Cinemark’s latest earnings showed revenue of $643.1 million, above estimates, but EPS of -$0.06 slightly missed forecasts; the stock opened at $29.91 and has traded between $21.60 and $34.73 over the past 52 weeks.

Cinemark (NYSE:CNK - Get Free Report) was downgraded by equities research analysts at Wells Fargo & Company from a "strong-buy" rating to a "hold" rating in a report released on Thursday,Zacks.com reports.

Several other equities research analysts have also weighed in on CNK. Roth Capital restated a "buy" rating and issued a $37.00 target price on shares of Cinemark in a report on Thursday, April 23rd. Barrington Research reiterated an "outperform" rating and set a $36.00 price target on shares of Cinemark in a report on Monday, May 4th. The Goldman Sachs Group raised shares of Cinemark from a "sell" rating to a "neutral" rating and lifted their price target for the company from $23.00 to $30.00 in a research report on Wednesday, July 8th. Morgan Stanley boosted their price objective on shares of Cinemark from $30.00 to $36.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 9th. Finally, B. Riley Financial upped their price objective on shares of Cinemark from $34.00 to $36.00 and gave the stock a "neutral" rating in a report on Thursday, June 11th. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Cinemark has an average rating of "Moderate Buy" and a consensus price target of $34.58.

Cinemark Price Performance

Shares of NYSE:CNK opened at $29.91 on Thursday. Cinemark has a fifty-two week low of $21.60 and a fifty-two week high of $34.73. The business has a 50-day moving average of $30.05 and a two-hundred day moving average of $27.74. The stock has a market capitalization of $3.49 billion, a P/E ratio of 26.47 and a beta of 0.98. The company has a debt-to-equity ratio of 5.03, a current ratio of 0.62 and a quick ratio of 0.58.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $643.10 million for the quarter, compared to the consensus estimate of $632.74 million. Cinemark had a return on equity of 41.31% and a net margin of 5.31%.The business's revenue was up 18.9% compared to the same quarter last year. During the same quarter last year, the company posted ($0.32) EPS. On average, equities research analysts predict that Cinemark will post 2.18 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Cinemark by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 65,699 shares of the company's stock worth $1,635,000 after acquiring an additional 2,872 shares during the last quarter. Woodline Partners LP acquired a new position in Cinemark during the 1st quarter valued at $570,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Cinemark by 8.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 345,258 shares of the company's stock valued at $8,593,000 after purchasing an additional 25,490 shares during the last quarter. Acadian Asset Management LLC acquired a new position in Cinemark during the 1st quarter valued at $372,000. Finally, Russell Investments Group Ltd. boosted its holdings in Cinemark by 48.0% in the 2nd quarter. Russell Investments Group Ltd. now owns 5,228 shares of the company's stock valued at $158,000 after purchasing an additional 1,696 shares during the period.

Cinemark Company Profile

Cinemark Holdings, Inc NYSE: CNK is a leading theatrical exhibitor that acquires, develops and operates motion picture theatres under the Cinemark® brand in the United States and Latin America. The company's core business involves the presentation of first-run feature films coupled with an array of in‐theatre services, including concessions, premium auditoriums and loyalty programs. Cinemark's exhibition portfolio encompasses both corporate‐owned and franchised complexes, offering moviegoers a range of experiences from standard screens to large‐format halls.

The company's product offerings extend beyond ticket sales to include an assortment of concession items, such as popcorn, fountain beverages, candy and specialty snacks, as well as bar and lounge concepts in select locations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.