Cinemark (NYSE:CNK) Trading 5.6% Higher - Still a Buy?

Key Points

• Cinemark shares rose 5.6% to $38.64, reaching an intraday high of $38.70, although trading volume was 75% below the average session volume.
• Analyst sentiment is broadly positive: Cinemark has a “Moderate Buy” consensus rating, with an average price target of $37.93 and recent targets ranging as high as $43.
• The company beat quarterly expectations with adjusted EPS of $1.19 and revenue of $1.09 billion, while declaring a quarterly dividend of $0.09 per share, equivalent to a 0.9% annual yield.

Cinemark Holdings Inc (NYSE:CNK - Get Free Report) shares shot up 5.6% during trading on Monday . The stock traded as high as $38.70 and last traded at $38.64. Approximately 599,450 shares were traded during trading, a decline of 75% from the average session volume of 2,397,536 shares. The stock had previously closed at $36.60.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. The Goldman Sachs Group raised shares of Cinemark from a "sell" rating to a "neutral" rating and upped their price target for the company from $23.00 to $30.00 in a research report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $40.00 price objective on shares of Cinemark in a research note on Friday, July 31st. Wedbush raised their price target on shares of Cinemark from $40.00 to $43.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Morgan Stanley set a $40.00 price target on shares of Cinemark in a report on Wednesday, July 29th. Finally, Benchmark lifted their price objective on Cinemark from $37.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $37.93.

Cinemark Price Performance

The company has a market capitalization of $4.48 billion, a PE ratio of 22.84 and a beta of 1.00. The firm's 50-day moving average is $33.70 and its 200-day moving average is $29.97. 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 posted its quarterly earnings results on Thursday, July 30th. The company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.03 by $0.16. The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.03 billion. Cinemark had a net margin of 6.44% and a return on equity of 50.94%. The business's revenue was up 15.5% compared to the same quarter last year. During the same period last year, the firm posted $0.63 earnings per share. Equities analysts predict that Cinemark Holdings Inc will post 2.36 earnings per share for the current fiscal year.

Cinemark Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Wednesday, August 26th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, August 26th. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. Cinemark's dividend payout ratio (DPR) is presently 21.30%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System boosted its position in shares of Cinemark by 3,026.1% in the 2nd quarter. California State Teachers Retirement System now owns 3,803,380 shares of the company's stock worth $119,867,000 after purchasing an additional 3,681,716 shares in the last quarter. Nykredit A S bought a new position in Cinemark during the second quarter valued at approximately $135,000. Two Sigma Securities LLC bought a new stake in shares of Cinemark in the second quarter worth $317,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Cinemark by 2.6% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 305,886 shares of the company's stock valued at $9,706,000 after buying an additional 7,658 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Cinemark in the 2nd quarter worth $32,000.

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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