Cinemark (NYSE:CNK) Shares Gap Up - Time to Buy?

Key Points

• Cinemark (NYSE:CNK) shares gapped up, opening at $28.42 after a previous closing of $26.87, with the latest trade at $26.72.
• Several analysts have adjusted their ratings on Cinemark, with a consensus of ten buy ratings and an average price target of $34.00.
• The company recently reported earnings of $0.63 EPS, missing estimates, and noted a 28.1% year-over-year revenue increase.

Cinemark Holdings Inc (NYSE:CNK - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $26.87, but opened at $28.42. Cinemark shares last traded at $26.72, with a volume of 658,554 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CNK shares. Wedbush raised shares of Cinemark from a "neutral" rating to an "outperform" rating and upped their price target for the company from $32.00 to $37.00 in a report on Friday, July 11th. Barrington Research reissued an "outperform" rating and set a $36.00 target price on shares of Cinemark in a report on Monday, May 5th. B. Riley initiated coverage on shares of Cinemark in a report on Friday, May 16th. They set a "neutral" rating and a $35.00 target price on the stock. Roth Capital dropped their target price on shares of Cinemark from $36.00 to $35.00 and set a "buy" rating on the stock in a report on Wednesday, July 9th. Finally, Wall Street Zen cut shares of Cinemark from a "hold" rating to a "sell" rating in a report on Saturday. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $34.00.

Cinemark Stock Down 3.9%

The firm's 50-day moving average price is $30.68 and its 200 day moving average price is $29.06. The firm has a market cap of $2.97 billion, a P/E ratio of 14.11, a price-to-earnings-growth ratio of 2.20 and a beta of 1.90. The company has a quick ratio of 0.76, a current ratio of 0.79 and a debt-to-equity ratio of 5.11.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings results on Friday, August 1st. The company reported $0.63 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.15). The firm had revenue of $940.50 million for the quarter, compared to the consensus estimate of $942.14 million. Cinemark had a return on equity of 59.16% and a net margin of 9.13%. The firm's revenue was up 28.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.32 EPS. As a group, research analysts expect that Cinemark Holdings Inc will post 1.93 earnings per share for the current year.

Cinemark Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 12th. Investors of record on Thursday, May 29th were given a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Thursday, May 29th. Cinemark's dividend payout ratio is currently 21.05%.

Insider Activity at Cinemark

In related news, EVP Melissa Thomas sold 7,200 shares of the stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $31.43, for a total value of $226,296.00. Following the completion of the transaction, 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 sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Valmir Fernandes sold 25,000 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $33.01, for a total transaction of $825,250.00. Following the completion of the transaction, the insider owned 130,612 shares of the company's stock, valued at $4,311,502.12. This represents a 16.07% decrease in their position. The disclosure for this sale can be found here. Insiders sold 84,724 shares of company stock worth $2,724,435 in the last 90 days. Corporate insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Cinemark

Several large investors have recently made changes to their positions in CNK. LPL Financial LLC boosted its position in shares of Cinemark by 6.8% during the 4th quarter. LPL Financial LLC now owns 8,722 shares of the company's stock valued at $270,000 after purchasing an additional 556 shares in the last quarter. Norges Bank bought a new position in shares of Cinemark during the 4th quarter valued at about $25,623,000. O Shaughnessy Asset Management LLC boosted its position in shares of Cinemark by 121.2% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 60,597 shares of the company's stock valued at $1,877,000 after purchasing an additional 33,197 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of Cinemark by 25.0% during the 4th quarter. Franklin Resources Inc. now owns 70,964 shares of the company's stock valued at $2,198,000 after purchasing an additional 14,207 shares in the last quarter. Finally, Resona Asset Management Co. Ltd. bought a new position in shares of Cinemark during the 4th quarter valued at about $348,000.

Cinemark Company Profile

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.