Wellington Management Group LLP Acquires 1,066,225 Shares of Cinemark Holdings Inc $CNK

Key Points

• Wellington Management Group LLP increased its stake in Cinemark Holdings Inc by 12.9%, owning over 9.34 million shares worth approximately $232.64 million.
• Cinemark recently announced a quarterly dividend of $0.08 per share, representing a 1.2% dividend yield with a payout ratio of 17.49%.
• Despite reporting a miss on earnings estimates for the last quarter, analysts are maintaining a largely positive outlook on the stock, with a consensus rating of "Moderate Buy".

Wellington Management Group LLP boosted its stake in shares of Cinemark Holdings Inc (NYSE:CNK - Free Report) by 12.9% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 9,346,856 shares of the company's stock after buying an additional 1,066,225 shares during the quarter. Wellington Management Group LLP owned approximately 8.13% of Cinemark worth $232,643,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in the stock. LPL Financial LLC grew its position in Cinemark by 6.8% during the fourth quarter. LPL Financial LLC now owns 8,722 shares of the company's stock valued at $270,000 after buying an additional 556 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in Cinemark by 3.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 16,270 shares of the company's stock valued at $504,000 after purchasing an additional 591 shares during the last quarter. Quarry LP lifted its holdings in Cinemark by 41.8% during the fourth quarter. Quarry LP now owns 2,114 shares of the company's stock valued at $65,000 after purchasing an additional 623 shares during the last quarter. Elequin Capital LP lifted its holdings in Cinemark by 211.6% during the fourth quarter. Elequin Capital LP now owns 997 shares of the company's stock valued at $31,000 after purchasing an additional 677 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its holdings in Cinemark by 402.4% during the fourth quarter. Russell Investments Group Ltd. now owns 1,030 shares of the company's stock valued at $32,000 after purchasing an additional 825 shares during the last quarter.

Wall Street Analyst Weigh In

Several equities research analysts have commented on CNK shares. Barrington Research reaffirmed an "outperform" rating and set a $36.00 price objective on shares of Cinemark in a report on Monday, August 4th. Roth Capital dropped their price objective on shares of Cinemark from $36.00 to $34.00 and set a "buy" rating on the stock in a report on Monday, August 4th. Benchmark reaffirmed a "buy" rating and set a $35.00 price objective on shares of Cinemark in a report on Wednesday, July 2nd. JPMorgan Chase & Co. upped their price objective on shares of Cinemark from $34.00 to $35.00 and gave the company an "overweight" rating in a report on Monday, May 5th. Finally, B. Riley assumed coverage on shares of Cinemark in a report on Friday, May 16th. They set a "neutral" rating and a $35.00 price objective on the stock. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $33.67.

Cinemark Price Performance

Shares of Cinemark stock traded down $0.1260 on Monday, reaching $26.4240. The stock had a trading volume of 808,438 shares, compared to its average volume of 3,909,829. Cinemark Holdings Inc has a 1 year low of $23.12 and a 1 year high of $36.28. The company has a market cap of $3.04 billion, a P/E ratio of 14.41, a price-to-earnings-growth ratio of 1.90 and a beta of 1.90. The company has a current ratio of 0.91, a quick ratio of 0.88 and a debt-to-equity ratio of 4.32. The business's 50 day moving average is $28.68 and its two-hundred day moving average is $28.69.

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

Cinemark Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Wednesday, August 27th will be paid a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, August 27th. Cinemark's dividend payout ratio (DPR) is currently 17.49%.

Insider Activity at Cinemark

In related news, insider Valmir Fernandes sold 25,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $33.01, for a total value of $825,250.00. Following the sale, the insider directly owned 130,612 shares of the company's stock, valued at $4,311,502.12. This trade represents a 16.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Wanda Marie Gierhart sold 52,524 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $31.85, for a total transaction of $1,672,889.40. Following the completion of the sale, the insider directly owned 94,890 shares in the company, valued at $3,022,246.50. This represents a 35.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 84,724 shares of company stock valued at $2,679,363 over the last three months. 2.30% of the stock is owned by corporate insiders.

Cinemark Profile

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.