Cinemark (NYSE:CNK) Shares Gap Down - Here's What Happened

Key Points

• Cinemark Holdings Inc shares gapped down to $27.94 from a previous close of $28.60, last trading at $27.67 with a volume of 453,482 shares.
• Analysts have issued mixed ratings on Cinemark, with ten assigning a "buy" rating and a target price averaging $34.91, yet Roth Capital reduced their target from $36.00 to $34.00.
• Cinemark reported earnings of $0.63 per share for the last quarter, missing estimates, while experiencing a 28.1% year-over-year revenue increase to $940.50 million.

Shares of Cinemark Holdings Inc (NYSE:CNK - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $28.60, but opened at $27.94. Cinemark shares last traded at $27.67, with a volume of 453,482 shares.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Roth Capital lowered their target price on Cinemark from $36.00 to $34.00 and set a "buy" rating for the company in a report on Monday, August 4th. Deutsche Bank Aktiengesellschaft assumed coverage on Cinemark in a report on Thursday, July 10th. They set a "buy" rating and a $36.00 target price for the company. Barrington Research reiterated an "outperform" rating and set a $36.00 target price on shares of Cinemark in a report on Tuesday, September 23rd. Wells Fargo & Company restated an "overweight" rating and issued a $33.00 price objective (down previously from $36.00) on shares of Cinemark in a report on Monday, August 4th. Finally, Benchmark restated a "buy" rating and issued a $35.00 price objective on shares of Cinemark in a report on Wednesday, July 2nd. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Cinemark presently has a consensus rating of "Moderate Buy" and an average target price of $34.91.

Cinemark Price Performance

The firm has a market capitalization of $3.20 billion, a price-to-earnings ratio of 15.17, a P/E/G ratio of 2.04 and a beta of 1.85. The company's 50 day moving average is $26.97 and its 200-day moving average is $28.63. The company has a current ratio of 0.91, a quick ratio of 0.88 and a debt-to-equity ratio of 4.32.

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 the consensus estimate of $0.78 by ($0.15). The company had revenue of $940.50 million for the quarter, compared to analyst estimates of $942.14 million. Cinemark had a return on equity of 59.16% and a net margin of 9.13%.The company's revenue was up 28.1% on a year-over-year basis. During the same quarter last year, the business earned $0.32 earnings per share. Equities research analysts anticipate that Cinemark Holdings Inc will post 1.93 earnings per share for the current year.

Cinemark Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Wednesday, August 27th were given a dividend of $0.08 per share. The ex-dividend date was Wednesday, August 27th. This represents a $0.32 annualized dividend and a yield of 1.2%. Cinemark's dividend payout ratio (DPR) is 17.49%.

Insider Transactions at Cinemark

In other Cinemark news, EVP Melissa Thomas sold 7,200 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $25.17, for a total transaction of $181,224.00. Following the completion of the sale, the executive vice president directly owned 203,768 shares in the company, valued at $5,128,840.56. This trade represents a 3.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cinemark

Hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC increased its stake in Cinemark by 118.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 935 shares of the company's stock worth $28,000 after acquiring an additional 507 shares during the period. QRG Capital Management Inc. raised its stake in 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 purchasing an additional 521 shares in the last quarter. Resona Asset Management Co. Ltd. lifted its position in Cinemark by 7.2% during the second quarter. Resona Asset Management Co. Ltd. now owns 12,056 shares of the company's stock worth $364,000 after purchasing an additional 812 shares during the period. State of Alaska Department of Revenue increased its holdings in Cinemark by 1.5% in the 2nd quarter. State of Alaska Department of Revenue now owns 60,062 shares of the company's stock valued at $1,812,000 after buying an additional 892 shares during the period. Finally, New York State Teachers Retirement System raised its position in shares of Cinemark by 0.9% in the 2nd 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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