Cinemark (NYSE:CNK) Trading Down 5.7% After Earnings Miss

Key Points

• Shares of Cinemark fell 5.7% after the company reported ($0.06) EPS, missing the consensus by $0.01, even though revenue rose 18.9% year‑over‑year to $643.1 million and beat estimates.
• Analysts are broadly constructive—Cinemark has a consensus rating of "Moderate Buy" with a mean target of $32.92 and several firms raising price targets into the mid‑$30s.
• The company pays a quarterly dividend of $0.09 (annualized $0.36, ~1.3% yield) while carrying a leveraged balance sheet (debt/equity ~4.74) and a market cap around $3.3 billion.

Shares of Cinemark Holdings Inc (NYSE:CNK - Get Free Report) dropped 5.7% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $27.60 and last traded at $27.85. Approximately 712,907 shares were traded during trading, a decline of 70% from the average daily volume of 2,393,678 shares. The stock had previously closed at $29.52.

The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). Cinemark had a return on equity of 34.11% and a net margin of 4.44%.The firm had revenue of $643.10 million for the quarter, compared to analyst estimates of $632.74 million. During the same period in the previous year, the company posted ($0.32) EPS. Cinemark's revenue was up 18.9% on a year-over-year basis.

Cinemark Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, March 3rd. This represents a $0.36 annualized dividend and a yield of 1.3%. Cinemark's dividend payout ratio is presently 41.38%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. JPMorgan Chase & Co. increased their price target on Cinemark from $31.00 to $35.00 and gave the company an "overweight" rating in a research report on Wednesday, April 8th. Wall Street Zen raised Cinemark from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. Macquarie Infrastructure reduced their price target on Cinemark from $36.00 to $34.00 and set an "outperform" rating on the stock in a research report on Thursday, January 15th. Wells Fargo & Company increased their price target on Cinemark from $32.00 to $36.00 and gave the company an "overweight" rating in a research report on Thursday, April 9th. Finally, Roth Mkm reaffirmed a "buy" rating and issued a $37.00 price target on shares of Cinemark in a research report on Thursday, April 23rd. Ten investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Cinemark has a consensus rating of "Moderate Buy" and a consensus target price of $32.92.

Insider Activity at Cinemark

In other news, EVP Melissa Thomas sold 7,944 shares of the stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $26.05, for a total value of $206,941.20. Following the transaction, the executive vice president owned 159,416 shares in the company, valued at approximately $4,152,786.80. This represents a 4.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CNK. EverSource Wealth Advisors LLC grew 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 buying an additional 507 shares during the last quarter. Financial Consulate Inc. purchased a new position in Cinemark during the 3rd quarter worth approximately $50,000. Meeder Asset Management Inc. purchased a new position in Cinemark during the 3rd quarter worth approximately $63,000. Smartleaf Asset Management LLC grew its stake in Cinemark by 20.1% during the 3rd quarter. Smartleaf Asset Management LLC now owns 3,027 shares of the company's stock worth $83,000 after buying an additional 506 shares during the last quarter. Finally, Leonteq Securities AG purchased a new position in Cinemark during the 4th quarter worth approximately $83,000.

Cinemark Stock Down 4.7%

The business has a 50 day moving average of $28.22 and a 200-day moving average of $26.41. The stock has a market cap of $3.29 billion, a PE ratio of 31.91 and a beta of 1.09. The company has a current ratio of 0.71, a quick ratio of 0.67 and a debt-to-equity ratio of 4.74.

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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