Stock Traders Purchase Large Volume of Call Options on Cinemark (NYSE:CNK)

Cinemark Holdings, Inc. (NYSE:CNK - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders bought 16,649 call options on the stock. This represents an increase of approximately 597% compared to the average daily volume of 2,387 call options.

Insider Buying and Selling at Cinemark

In other Cinemark news, 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 value of $825,250.00. Following the completion of the sale, the insider now owns 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 SEC, which is accessible through the SEC website. Also, 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 transaction of $226,296.00. Following the completion of the sale, the executive vice president now owns 210,968 shares of the company's stock, valued at approximately $6,630,724.24. This trade represents a 3.30% decrease in their position. The disclosure for this sale can be found here. Company insiders own 2.10% of the company's stock.

Institutional Trading of Cinemark

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in Cinemark by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 12,505,099 shares of the company's stock worth $387,408,000 after acquiring an additional 109,179 shares during the last quarter. Wellington Management Group LLP grew its holdings in Cinemark by 12.9% in the 1st quarter. Wellington Management Group LLP now owns 9,346,856 shares of the company's stock worth $232,643,000 after acquiring an additional 1,066,225 shares during the last quarter. Candlestick Capital Management LP grew its holdings in Cinemark by 48.1% in the 4th quarter. Candlestick Capital Management LP now owns 4,931,618 shares of the company's stock worth $152,782,000 after acquiring an additional 1,601,537 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Cinemark by 100.2% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,104,552 shares of the company's stock worth $127,159,000 after acquiring an additional 2,054,579 shares during the last quarter. Finally, Renaissance Technologies LLC grew its holdings in Cinemark by 12.8% in the 4th quarter. Renaissance Technologies LLC now owns 3,801,578 shares of the company's stock worth $117,773,000 after acquiring an additional 430,006 shares during the last quarter.

Wall Street Analyst Weigh In

Several equities research analysts have commented on CNK shares. Wedbush reiterated a "neutral" rating and issued a $32.00 price objective on shares of Cinemark in a research note on Monday, April 28th. Benchmark decreased their price objective on shares of Cinemark from $40.00 to $35.00 and set a "buy" rating for the company in a research note on Thursday, February 20th. Macquarie reissued an "outperform" rating and set a $35.00 target price on shares of Cinemark in a research report on Thursday, February 20th. Barrington Research reissued an "outperform" rating and set a $36.00 target price on shares of Cinemark in a research report on Monday, May 5th. Finally, JPMorgan Chase & Co. increased their target price on shares of Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a research report on Monday, May 5th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $33.20.

Cinemark Stock Performance

CNK traded up $0.80 on Friday, hitting $33.76. The company's stock had a trading volume of 2,969,920 shares, compared to its average volume of 3,014,736. The company's 50 day simple moving average is $29.00 and its 200-day simple moving average is $29.59. The firm has a market cap of $3.88 billion, a P/E ratio of 16.63 and a beta of 1.91. Cinemark has a 12 month low of $16.32 and a 12 month high of $36.28. The company has a quick ratio of 0.96, a current ratio of 1.01 and a debt-to-equity ratio of 3.28.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings data on Friday, May 2nd. The company reported ($0.32) EPS for the quarter, hitting the consensus estimate of ($0.32). The company had revenue of $540.70 million during the quarter, compared to the consensus estimate of $604.62 million. Cinemark had a net margin of 10.16% and a return on equity of 65.83%. Cinemark's revenue for the quarter was down 6.6% on a year-over-year basis. During the same period last year, the firm earned $0.19 EPS. Analysts forecast that Cinemark will post 1.93 EPS for the current year.

Cinemark Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Investors of record on Thursday, May 29th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 0.95%. The ex-dividend date of this dividend is Thursday, May 29th. Cinemark's dividend payout ratio (DPR) 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.