JPMorgan Chase & Co. Issues Positive Forecast for Cinemark (NYSE:CNK) Stock Price

Key Points

• JPMorgan Chase raised its target on Cinemark to $36 (from $35) and maintains an "overweight" rating, implying roughly a 32.1% upside from the recent close.
• Analyst consensus is a "Moderate Buy" with an average price target of $33.31 — 10 analysts rate Buy, 4 Hold and 1 Sell.
• Cinemark's latest quarter saw a slight EPS miss (‑$0.06 vs. ‑$0.05 est.) but revenue beat; the stock trades around $27.25 (down 1.3%), and the company carries high leverage (debt/equity 4.81) with low liquidity (current ratio 0.71).

Cinemark (NYSE:CNK - Get Free Report) had its target price increased by analysts at JPMorgan Chase & Co. from $35.00 to $36.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 32.10% from the company's previous close.

Other equities analysts also recently issued research reports about the stock. UBS Group upgraded shares of Cinemark to a "buy" rating in a research note on Tuesday, January 20th. Morgan Stanley upped their price objective on shares of Cinemark from $28.00 to $30.00 and gave the company an "equal weight" rating in a research note on Thursday. Benchmark restated a "buy" rating on shares of Cinemark in a research note on Thursday, February 19th. The Goldman Sachs Group restated a "sell" rating and issued a $22.00 price objective on shares of Cinemark in a research note on Thursday, February 19th. Finally, Zacks Research upgraded shares of Cinemark from a "strong sell" rating to a "hold" rating in a research note on Monday, March 2nd. Ten analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Cinemark presently has a consensus rating of "Moderate Buy" and an average price target of $33.31.

Cinemark Stock Down 1.3%

Shares of Cinemark stock traded down $0.37 during trading on Monday, hitting $27.25. 3,134,715 shares of the stock were exchanged, compared to its average volume of 2,453,961. The stock has a market cap of $3.18 billion, a price-to-earnings ratio of 24.12 and a beta of 1.03. The firm's 50-day moving average price is $28.22 and its 200 day moving average price is $26.42. Cinemark has a 12-month low of $21.60 and a 12-month high of $34.01. The company has a debt-to-equity ratio of 4.81, a current ratio of 0.71 and a quick ratio of 0.67.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings data on Friday, May 1st. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $643.10 million for the quarter, compared to analysts' expectations of $632.74 million. Cinemark had a return on equity of 41.31% and a net margin of 5.31%.Cinemark's revenue for the quarter was up 18.9% on a year-over-year basis. During the same period last year, the firm posted ($0.32) earnings per share. As a group, analysts forecast that Cinemark will post 2.14 earnings per share for the current fiscal year.

Insider Activity at Cinemark

In other news, EVP Melissa Thomas sold 7,944 shares of the company's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $26.05, for a total value of $206,941.20. Following the completion of the sale, the executive vice president directly owned 159,416 shares of the company's stock, valued at approximately $4,152,786.80. This represents a 4.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On Cinemark

Institutional investors and hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its holdings in shares of Cinemark by 118.5% in the second quarter. EverSource Wealth Advisors LLC now owns 935 shares of the company's stock valued at $28,000 after buying an additional 507 shares during the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Cinemark in the third quarter valued at about $63,000. Smartleaf Asset Management LLC raised its holdings in shares of Cinemark by 20.1% in the third quarter. Smartleaf Asset Management LLC now owns 3,027 shares of the company's stock valued at $83,000 after buying an additional 506 shares during the last quarter. Leonteq Securities AG purchased a new position in Cinemark during the fourth quarter worth about $83,000. Finally, GAMMA Investing LLC raised its holdings in Cinemark by 51.8% during the fourth quarter. GAMMA Investing LLC now owns 4,022 shares of the company's stock worth $93,000 after purchasing an additional 1,372 shares in the last quarter.

About Cinemark

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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