Cinemark (NYSE:CNK) Reaches New 1-Year High on Analyst Upgrade

Key Points

• Cinemark shares reached a new 52-week high after Weiss Ratings upgraded the stock from “hold” to “hold (c+),” with shares trading near $38.45. The stock carries a consensus “Moderate Buy” rating and an average price target of $38.00.
• Several analysts raised their price targets, including Wedbush, which lifted its target to $43 and maintained an “outperform” rating. Nine analysts rate Cinemark a Buy, while six recommend Hold.
• Cinemark reported quarterly EPS of $1.19, beating estimates of $1.03, while revenue rose 15.5% year over year to $1.09 billion. The company also declared a quarterly dividend of $0.09 per share, equivalent to a 0.9% annualized yield.

Shares of Cinemark Holdings Inc (NYSE:CNK - Get Free Report) reached a new 52-week high during mid-day trading on Monday after Weiss Ratings upgraded the stock from a hold (c) rating to a hold (c+) rating. The company traded as high as $38.04 and last traded at $38.4520, with a volume of 201897 shares. The stock had previously closed at $36.59.

A number of other research analysts also recently weighed in on CNK. Morgan Stanley set a $40.00 target price on Cinemark in a report on Wednesday. Wedbush boosted their price target on Cinemark from $40.00 to $43.00 and gave the company an "outperform" rating in a research note on Friday. B. Riley Financial upped their price target on shares of Cinemark from $35.00 to $37.00 and gave the company a "neutral" rating in a research report on Friday. Wells Fargo & Company increased their price objective on shares of Cinemark from $31.00 to $34.00 and gave the stock an "equal weight" rating in a research note on Friday. Finally, Wall Street Zen raised shares of Cinemark from a "hold" rating to a "buy" rating in a report on Sunday, May 31st. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Cinemark currently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CNK. Handelsbanken Fonder AB lifted its position in shares of Cinemark by 5.4% during the 2nd quarter. Handelsbanken Fonder AB now owns 29,532 shares of the company's stock valued at $937,000 after buying an additional 1,500 shares in the last quarter. Assenagon Asset Management S.A. increased its holdings in Cinemark by 378.4% in the 2nd quarter. Assenagon Asset Management S.A. now owns 117,150 shares of the company's stock worth $3,717,000 after acquiring an additional 92,661 shares in the last quarter. GAMMA Investing LLC raised its stake in Cinemark by 10.2% during the 2nd quarter. GAMMA Investing LLC now owns 4,982 shares of the company's stock worth $158,000 after acquiring an additional 462 shares during the period. Bank of America Corp DE raised its stake in Cinemark by 115.1% during the 1st quarter. Bank of America Corp DE now owns 831,389 shares of the company's stock worth $23,711,000 after acquiring an additional 444,965 shares during the period. Finally, Janus Henderson Group PLC lifted its holdings in Cinemark by 53.2% during the first quarter. Janus Henderson Group PLC now owns 376,632 shares of the company's stock valued at $10,742,000 after purchasing an additional 130,785 shares in the last quarter.

Cinemark Price Performance

The firm has a market cap of $4.42 billion, a PE ratio of 22.61 and a beta of 1.00. The firm's fifty day simple moving average is $31.58 and its two-hundred day simple moving average is $28.55. The company has a quick ratio of 0.81, a current ratio of 0.84 and a debt-to-equity ratio of 3.87.

Cinemark (NYSE:CNK - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.03 by $0.16. Cinemark had a net margin of 6.44% and a return on equity of 50.94%. The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same period last year, the firm earned $0.63 EPS. The company's revenue was up 15.5% on a year-over-year basis. As a group, research analysts expect that Cinemark Holdings Inc will post 2.16 EPS for the current year.

Cinemark Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Thursday, May 28th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Thursday, May 28th. Cinemark's dividend payout ratio is presently 21.30%.

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.

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