Rivermont Capital Management LP Makes New Investment in Cinemark Holdings Inc $CNK

Key Points

• Rivermont Capital Management LP has acquired a new position in Cinemark Holdings Inc, purchasing 441,925 shares valued at approximately $11 million, making it 4.6% of their total holdings.
• Cinemark's stock has seen a trading increase of 5.8%, with current shares priced at $27.39, marking a significant change from a 52-week low of $23.12.
• The company announced a quarterly dividend of $0.08 per share, representing an annualized yield of 1.2%, to be paid to investors on September 10th.

Rivermont Capital Management LP purchased a new stake in shares of Cinemark Holdings Inc (NYSE:CNK - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 441,925 shares of the company's stock, valued at approximately $11,000,000. Cinemark makes up 4.6% of Rivermont Capital Management LP's investment portfolio, making the stock its 9th biggest position. Rivermont Capital Management LP owned 0.38% of Cinemark as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Elequin Capital LP increased its stake in Cinemark by 211.6% during the 4th quarter. Elequin Capital LP now owns 997 shares of the company's stock valued at $31,000 after purchasing an additional 677 shares in the last quarter. Russell Investments Group Ltd. increased its stake in Cinemark by 242.9% during the 1st quarter. Russell Investments Group Ltd. now owns 3,532 shares of the company's stock valued at $88,000 after purchasing an additional 2,502 shares in the last quarter. CWM LLC increased its stake in Cinemark by 20.6% during the 1st quarter. CWM LLC now owns 6,548 shares of the company's stock valued at $163,000 after purchasing an additional 1,118 shares in the last quarter. Mackenzie Financial Corp bought a new stake in Cinemark during the 4th quarter valued at $221,000. Finally, Numerai GP LLC bought a new stake in Cinemark during the 4th quarter valued at $233,000.

Wall Street Analysts Forecast Growth

CNK has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cinemark in a research note on Thursday, July 10th. They set a "buy" rating and a $36.00 price target for the company. Wall Street Zen upgraded shares of Cinemark from a "sell" rating to a "hold" rating in a report on Sunday, August 10th. Barrington Research reiterated an "outperform" rating and issued a $36.00 target price on shares of Cinemark in a report on Monday, August 4th. Benchmark reiterated a "buy" rating and issued a $35.00 target price on shares of Cinemark in a report on Wednesday, July 2nd. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $33.00 target price (down previously from $36.00) on shares of Cinemark in a report on Monday, August 4th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $33.67.

Cinemark Stock Up 0.3%

Shares of CNK stock traded up $0.09 on Friday, hitting $28.26. The stock had a trading volume of 2,785,344 shares, compared to its average volume of 3,633,074. The stock has a market cap of $3.25 billion, a price-to-earnings ratio of 15.44, a price-to-earnings-growth ratio of 2.02 and a beta of 1.85. The business has a 50 day moving average of $27.27 and a 200 day moving average of $28.34. The company has a debt-to-equity ratio of 4.32, a current ratio of 0.91 and a quick ratio of 0.88. Cinemark Holdings Inc has a 12-month low of $23.12 and a 12-month high of $36.28.

Cinemark (NYSE:CNK - Get Free Report) last posted its quarterly earnings results on Friday, August 1st. The company reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.15). The company had revenue of $940.50 million for the quarter, compared to the consensus estimate of $942.14 million. Cinemark had a net margin of 9.13% and a return on equity of 59.16%. Cinemark's quarterly revenue was up 28.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.32 EPS. As a group, analysts expect that Cinemark Holdings Inc will post 1.93 EPS for the current year.

Cinemark Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Wednesday, August 27th were given a dividend of $0.08 per share. The ex-dividend date was Wednesday, August 27th. This represents a $0.32 annualized dividend and a yield of 1.1%. Cinemark's dividend payout ratio is presently 17.49%.

Insiders Place Their Bets

In related news, EVP Melissa Thomas sold 7,200 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $25.17, for a total transaction of $181,224.00. Following the completion of the transaction, the executive vice president owned 203,768 shares in the company, valued at approximately $5,128,840.56. This represents a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.10% of the company's stock.

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.