Wellington Management Group LLP Sells 1,000,142 Shares of Cinemark Holdings Inc $CNK

Key Points

• Wellington Management reduced its Cinemark stake by 11.4%, selling 1,000,142 shares during the second quarter but retaining 7.76 million shares, valued at approximately $246.1 million.
• Cinemark reported stronger-than-expected quarterly results, with EPS of $1.19 versus the $1.03 consensus and revenue of $1.09 billion, up 15.5% year over year.
• The company declared a quarterly dividend of $0.09 per share, equal to an annualized $0.36 and a 1.0% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $37.93.

Wellington Management Group LLP decreased its stake in Cinemark Holdings Inc (NYSE:CNK - Free Report) by 11.4% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 7,755,183 shares of the company's stock after selling 1,000,142 shares during the period. Wellington Management Group LLP owned 6.69% of Cinemark worth $246,072,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently made changes to their positions in CNK. BlackRock Inc. bought a new stake in Cinemark in the 2nd quarter valued at about $530,855,000. Lavaca Capital LLC purchased a new position in shares of Cinemark during the 4th quarter valued at $133,045,000. Orbis Allan Gray Ltd increased its stake in Cinemark by 31.0% in the 4th quarter. Orbis Allan Gray Ltd now owns 15,057,911 shares of the company's stock worth $349,946,000 after acquiring an additional 3,563,810 shares during the last quarter. Alyeska Investment Group L.P. purchased a new stake in Cinemark in the fourth quarter valued at approximately $55,296,000. Finally, Victory Capital Management Inc. raised its position in shares of Cinemark by 12,759.3% during the 4th quarter. Victory Capital Management Inc. now owns 2,026,245 shares of the company's stock valued at $47,090,000 after buying an additional 2,010,488 shares in the last quarter.

Cinemark Stock Performance

CNK opened at $36.04 on Monday. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.81 and a current ratio of 0.84. The stock has a market capitalization of $4.18 billion, a price-to-earnings ratio of 21.33 and a beta of 1.00. Cinemark Holdings Inc has a fifty-two week low of $21.60 and a fifty-two week high of $38.98. The company has a fifty day moving average of $34.10 and a 200 day moving average of $30.38.

Cinemark (NYSE:CNK - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.03 by $0.16. Cinemark had a return on equity of 50.94% and a net margin of 6.44%.The company had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same period in the prior year, the company earned $0.63 earnings per share. The firm's revenue was up 15.5% on a year-over-year basis. As a group, sell-side analysts forecast that Cinemark Holdings Inc will post 2.36 earnings per share for the current fiscal year.

Cinemark Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Wednesday, August 26th will be given a dividend of $0.09 per share. The ex-dividend date is Wednesday, August 26th. This represents a $0.36 dividend on an annualized basis and a yield of 1.0%. Cinemark's dividend payout ratio is 21.30%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. B. Riley Financial boosted their target price on Cinemark from $35.00 to $37.00 and gave the company a "neutral" rating in a research note on Friday, July 31st. Wedbush lifted their price target on Cinemark from $40.00 to $43.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. JPMorgan Chase & Co. lowered Cinemark from an "overweight" rating to a "neutral" rating and reduced their price objective for the company from $40.00 to $39.00 in a research report on Friday, August 14th. The Goldman Sachs Group upgraded Cinemark from a "sell" rating to a "neutral" rating and lifted their price objective for the stock from $23.00 to $30.00 in a report on Wednesday, July 8th. Finally, Benchmark upped their price target on shares of Cinemark from $37.00 to $40.00 and gave the company a "buy" rating in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Cinemark has an average rating of "Moderate Buy" and a consensus target price of $37.93.

Cinemark Profile

Cinemark Holdings, Inc NYSE: CNK is a leading theatrical exhibitor that acquires, develops and operates motion picture theatres under the Cinemark® brand in the United States and Latin America. The company's core business involves the presentation of first-run feature films coupled with an array of in‐theatre services, including concessions, premium auditoriums and loyalty programs. Cinemark's exhibition portfolio encompasses both corporate‐owned and franchised complexes, offering moviegoers a range of experiences from standard screens to large‐format halls.

The company's product offerings extend beyond ticket sales to include an assortment of concession items, such as popcorn, fountain beverages, candy and specialty snacks, as well as bar and lounge concepts in select locations.

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