Cinemark (NYSE:CNK) Trading Down 6.1% After Analyst Downgrade

Cinemark Holdings Inc (NYSE:CNK - Get Free Report) dropped 6.1% on Wednesday after Roth Capital lowered their price target on the stock from $36.00 to $35.00. Roth Capital currently has a buy rating on the stock. Cinemark traded as low as $28.84 and last traded at $28.78. 1,432,397 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 3,182,794 shares. The stock had previously closed at $30.64.

Several other research analysts have also issued reports on the stock. Wedbush reaffirmed a "neutral" rating and issued a $32.00 target price on shares of Cinemark in a research note on Monday, April 28th. B. Riley assumed coverage on Cinemark in a research note on Friday, May 16th. They set a "neutral" rating and a $35.00 price objective for the company. JPMorgan Chase & Co. increased their target price on Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a research note on Monday, May 5th. Barrington Research restated an "outperform" rating and issued a $36.00 price target on shares of Cinemark in a report on Monday, May 5th. Finally, Benchmark reiterated a "buy" rating and issued a $35.00 price objective on shares of Cinemark in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have issued a buy rating to the company. According to MarketBeat, Cinemark currently has a consensus rating of "Moderate Buy" and an average price target of $33.36.

Insiders Place Their Bets

In related news, insider Valmir Fernandes sold 25,000 shares of Cinemark stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $33.01, for a total value of $825,250.00. Following the completion of the sale, the insider directly owned 130,612 shares in the company, valued at approximately $4,311,502.12. This trade represents a 16.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Wanda Marie Gierhart sold 52,524 shares of the company's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $31.85, for a total value of $1,672,889.40. Following the sale, the insider owned 94,890 shares of the company's stock, valued at approximately $3,022,246.50. This trade represents a 35.63% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 84,724 shares of company stock valued at $2,724,435. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Cinemark

Several institutional investors have recently added to or reduced their stakes in CNK. Inspire Investing LLC increased its holdings in Cinemark by 605.1% during the 1st quarter. Inspire Investing LLC now owns 102,936 shares of the company's stock worth $2,562,000 after purchasing an additional 88,338 shares during the period. Strs Ohio purchased a new stake in shares of Cinemark in the 1st quarter valued at $3,920,000. Acadian Asset Management LLC purchased a new stake in Cinemark in the 1st quarter worth approximately $372,000. Intech Investment Management LLC boosted its position in Cinemark by 52.0% during the first quarter. Intech Investment Management LLC now owns 94,133 shares of the company's stock worth $2,343,000 after purchasing an additional 32,190 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Cinemark by 8.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 345,258 shares of the company's stock worth $8,593,000 after purchasing an additional 25,490 shares during the last quarter.

Cinemark Trading Down 5.7%

The stock has a market capitalization of $3.32 billion, a PE ratio of 19.01, a P/E/G ratio of 1.84 and a beta of 1.88. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.79 and a quick ratio of 0.76. The company's 50 day moving average price is $31.44 and its two-hundred day moving average price is $29.24.

Cinemark (NYSE:CNK - Get Free Report) last announced its quarterly earnings results on Friday, May 2nd. The company reported ($0.32) EPS for the quarter, meeting the consensus estimate of ($0.32). Cinemark had a return on equity of 51.68% and a net margin of 8.17%. The business had revenue of $540.70 million for the quarter, compared to analyst estimates of $604.62 million. During the same quarter in the prior year, the company posted $0.19 EPS. The company's quarterly revenue was down 6.6% on a year-over-year basis. As a group, analysts expect that Cinemark Holdings Inc will post 1.93 earnings per share for the current year.

Cinemark Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 12th. Stockholders of record on Thursday, May 29th were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 1.11%. The ex-dividend date was Thursday, May 29th. Cinemark's payout ratio is presently 21.05%.

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.