Cineverse (NASDAQ:CNVS) Trading 2.8% Higher - Still a Buy?

Key Points

• Shares rose 2.8% to $2.59 on Wednesday with lighter-than-average volume; the stock trades near its 50‑day SMA ($2.60) and has a market cap of about $55.2 million.
• Cineverse reported Q4 EPS of ($0.05) vs. ($0.03) expected and revenue of $16.29M vs. $20M expected, leaving the company with negative net margin (‑16.67%) and negative ROE (‑27.40%).
• Analyst coverage is mixed (two Buys, one Sell) with a consensus rating of Hold and a $9.00 consensus price target, while insiders have bought ~187,500 shares (~$375k) in the last 90 days and now own 13.3% of the stock.

Cineverse Corp. (NASDAQ:CNVS - Get Free Report) traded up 2.8% during mid-day trading on Wednesday . The stock traded as high as $2.64 and last traded at $2.59. 173,034 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 229,161 shares. The stock had previously closed at $2.52.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Alliance Global Partners reissued a "buy" rating on shares of Cineverse in a research report on Wednesday, February 18th. Weiss Ratings reissued a "sell (d-)" rating on shares of Cineverse in a research report on Friday, March 27th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Cineverse presently has a consensus rating of "Hold" and a consensus price target of $9.00.

Cineverse Trading Up 2.8%

The stock has a market capitalization of $55.15 million, a PE ratio of -4.89 and a beta of 1.56. The stock's fifty day simple moving average is $2.60 and its 200-day simple moving average is $2.49.

Cineverse (NASDAQ:CNVS - Get Free Report) last posted its quarterly earnings data on Tuesday, February 17th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.02). The firm had revenue of $16.29 million for the quarter, compared to analysts' expectations of $20.00 million. Cineverse had a negative return on equity of 27.40% and a negative net margin of 16.67%.

Insider Activity

In other news, insider Yolanda Macias acquired 30,000 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were purchased at an average cost of $2.00 per share, with a total value of $60,000.00. Following the acquisition, the insider directly owned 121,760 shares of the company's stock, valued at $243,520. The trade was a 32.69% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark Wayne Lindsey purchased 35,000 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was bought at an average cost of $2.00 per share, for a total transaction of $70,000.00. Following the completion of the acquisition, the chief financial officer directly owned 154,168 shares in the company, valued at $308,336. The trade was a 29.37% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 187,500 shares of company stock worth $375,000. Company insiders own 13.30% of the company's stock.

Hedge Funds Weigh In On Cineverse

Hedge funds and other institutional investors have recently made changes to their positions in the stock. XTX Topco Ltd boosted its holdings in shares of Cineverse by 57.4% in the 4th quarter. XTX Topco Ltd now owns 29,126 shares of the company's stock worth $61,000 after buying an additional 10,621 shares during the last quarter. Corient Private Wealth LLC purchased a new position in shares of Cineverse in the 2nd quarter worth about $2,277,000. Two Sigma Investments LP boosted its holdings in shares of Cineverse by 449.8% in the 3rd quarter. Two Sigma Investments LP now owns 160,631 shares of the company's stock worth $540,000 after buying an additional 131,416 shares during the last quarter. Marshall Wace LLP boosted its holdings in shares of Cineverse by 551.1% in the 2nd quarter. Marshall Wace LLP now owns 102,237 shares of the company's stock worth $489,000 after buying an additional 86,534 shares during the last quarter. Finally, Acadian Asset Management LLC boosted its holdings in shares of Cineverse by 1,575.1% in the 1st quarter. Acadian Asset Management LLC now owns 122,598 shares of the company's stock worth $386,000 after buying an additional 115,279 shares during the last quarter. 8.19% of the stock is owned by hedge funds and other institutional investors.

Cineverse Company Profile

Cineverse NASDAQ: CNVS, formerly known as Cinedigm, is a digital entertainment company that acquires, produces and distributes film and television content across a range of platforms. Through its streaming division, the company offers a portfolio of direct-to-consumer channels and apps—spanning genres such as horror, faith and family, documentaries and classic cinema—on both AVOD (ad-supported) and FAST (free ad-supported television) services. Cineverse also licenses its curated libraries to third-party streaming platforms, pay-TV operators and retail video-on-demand providers.

In addition to its consumer-facing streaming business, Cineverse operates a digital cinema network that supplies hardware, software and content delivery solutions to cinema exhibitors throughout North America.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.