Cinemark (NYSE:CNK) Hits New 12-Month High - Still a Buy?

Key Points

• Cinemark shares reached a new 52-week high of $38.99 and were last trading near $38.66, above the consensus analyst price target of $37.93.
• Analysts maintain a generally positive outlook, with nine Buy ratings and six Holds, producing a consensus rating of “Moderate Buy.” Price targets range from $37 to $42.
• Cinemark exceeded quarterly expectations with earnings of $1.19 per share versus $1.03 expected and revenue of $1.09 billion. The company also paid a quarterly dividend of $0.09 per share, while major institutions including BlackRock established sizable positions.

Shares of Cinemark Holdings Inc (NYSE:CNK - Get Free Report) hit a new 52-week high during trading on Monday. The company traded as high as $38.99 and last traded at $38.6640, with a volume of 219235 shares changing hands. The stock had previously closed at $37.77.

Analyst Ratings Changes

Several research analysts have weighed in on CNK shares. Roth Capital set a $40.00 price target on shares of Cinemark in a research report on Thursday, July 30th. Guggenheim set a $37.00 price objective on Cinemark in a research report on Thursday, July 2nd. Barrington Research set a $42.00 price objective on Cinemark in a research note on Thursday, July 30th. Wall Street Zen downgraded Cinemark from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Weiss Ratings raised shares of Cinemark from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, August 21st. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, Cinemark currently has a consensus rating of "Moderate Buy" and a consensus target price of $37.93.

Cinemark Stock Up 1.1%

The company has a quick ratio of 0.81, a current ratio of 0.84 and a debt-to-equity ratio of 3.87. The stock has a market capitalization of $4.43 billion, a P/E ratio of 22.54 and a beta of 0.98. The company has a fifty day moving average price of $35.80 and a 200-day moving average price of $31.61.

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. The company had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.03 billion. Cinemark had a return on equity of 50.94% and a net margin of 6.44%.The firm's revenue was up 15.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.63 earnings per share. As a group, research analysts forecast that Cinemark Holdings Inc will post 2.51 EPS for the current fiscal year.

Cinemark Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Wednesday, August 26th were given a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Wednesday, August 26th. Cinemark's dividend payout ratio is currently 21.30%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CNK. BlackRock Inc. bought a new stake in Cinemark during the second quarter worth approximately $530,855,000. Park West Asset Management LLC purchased a new stake in Cinemark during the second quarter valued at approximately $40,707,000. Bank of New York Mellon Corp bought a new stake in shares of Cinemark in the 2nd quarter valued at approximately $29,387,000. Bank of America Corp DE bought a new stake in shares of Cinemark in the 2nd quarter valued at approximately $23,498,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Cinemark in the 2nd quarter worth approximately $22,657,000.

Cinemark Company Profile

Cinemark Holdings, Inc is a motion picture exhibition company that operates movie theaters in the United States and Latin America. Through its Cinemark and Century-branded locations, the company offers theatrical screenings of newly released films across a range of formats and venue types.

In addition to movie tickets, Cinemark generates revenue through food and beverage concessions, advertising, and premium entertainment experiences. Its offerings include luxury seating, large-format screens, and enhanced audio and visual presentations, along with online and mobile ticketing and the Movie Club customer loyalty program.

Founded in 1987 by Lee Roy Mitchell, Cinemark is headquartered in Plano, Texas.

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