Cinemark (NYSE:CNK) Stock Price Down 4.4% - Should You Sell?

Key Points

• Cinemark's stock price declined by 4.4% during mid-day trading, hitting a low of $26.89 with a significant drop in trading volume.
• Despite the recent decline, analysts maintain a consensus rating of "Moderate Buy" with a target price of $34.91 on average, with several firms providing positive ratings.
• The company reported earnings of $0.63 per share for the last quarter, missing expectations, but saw a year-over-year revenue increase of 28.1%.

Cinemark Holdings Inc (NYSE:CNK - Get Free Report)'s stock price dropped 4.4% during mid-day trading on Monday . The company traded as low as $26.89 and last traded at $26.98. Approximately 1,196,153 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 3,880,911 shares. The stock had previously closed at $28.23.

Analyst Ratings Changes

Several research firms recently weighed in on CNK. Benchmark restated a "buy" rating and set a $35.00 target price on shares of Cinemark in a report on Wednesday, July 2nd. Weiss Ratings restated a "hold (c+)" rating on shares of Cinemark in a research note on Saturday, September 27th. 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 research note on Monday, August 4th. Roth Capital lowered their target price on shares of Cinemark from $36.00 to $34.00 and set a "buy" rating for the company in a report on Monday, August 4th. Finally, Wedbush upgraded Cinemark from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $32.00 to $37.00 in a research note on Friday, July 11th. Ten equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Cinemark presently has a consensus rating of "Moderate Buy" and a consensus price target of $34.91.

Cinemark Price Performance

The firm's 50 day moving average is $26.80 and its 200 day moving average is $28.73. The firm has a market cap of $3.10 billion, a P/E ratio of 14.73, a price-to-earnings-growth ratio of 2.01 and a beta of 1.75. The company has a debt-to-equity ratio of 4.32, a current ratio of 0.91 and a quick ratio of 0.88.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings data on Friday, August 1st. The company reported $0.63 earnings per share for the quarter, missing analysts' consensus estimates of $0.78 by ($0.15). The business had revenue of $940.50 million during 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 business's revenue was up 28.1% on a year-over-year basis. During the same period last year, the company earned $0.32 EPS. As a group, analysts anticipate that Cinemark Holdings Inc will post 1.93 earnings per share for the current year.

Cinemark Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Wednesday, August 27th were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Wednesday, August 27th. Cinemark's payout ratio is currently 17.49%.

Insiders Place Their Bets

In other 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 owned 203,768 shares in the company, valued at $5,128,840.56. This trade represents a 3.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.10% of the stock is owned by company insiders.

Institutional Trading of Cinemark

Hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP increased its position in shares of Cinemark by 758.9% in the second quarter. Marshall Wace LLP now owns 4,497,305 shares of the company's stock valued at $135,729,000 after buying an additional 3,973,689 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Cinemark by 106.9% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,589,372 shares of the company's stock valued at $78,147,000 after buying an additional 1,338,153 shares during the last quarter. Nuveen LLC acquired a new stake in Cinemark during the first quarter valued at approximately $32,297,000. Squarepoint Ops LLC raised its position in shares of Cinemark by 119.9% during the 2nd quarter. Squarepoint Ops LLC now owns 2,180,513 shares of the company's stock worth $65,808,000 after purchasing an additional 1,188,709 shares during the period. Finally, Man Group plc bought a new stake in shares of Cinemark during the second quarter valued at approximately $33,953,000.

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.

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