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

Key Points

• Cinemark shares reached a new 52-week high of $39.09, trading above their prior close of $38.20. Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $37.93.
• The company exceeded quarterly expectations, reporting EPS of $1.19 versus the $1.03 consensus and revenue of $1.09 billion, up 15.5% year over year.
• Cinemark declared a quarterly dividend of $0.09 per share, equivalent to an annualized dividend of $0.36 and a 0.9% yield, while several institutional investors recently initiated or increased their positions.

Shares of Cinemark Holdings Inc (NYSE:CNK - Get Free Report) hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $39.09 and last traded at $38.6510, with a volume of 224,680 shares traded. The stock had previously closed at $38.20.

Analyst Ratings Changes

Several analysts have weighed in on the company. Roth Capital set a $40.00 price target on Cinemark in a research note on Thursday, July 30th. Wedbush raised their price objective on Cinemark from $40.00 to $43.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Wall Street Zen downgraded Cinemark from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 29th. Guggenheim set a $37.00 target price on Cinemark in a report on Thursday, July 2nd. Finally, Barrington Research set a $42.00 target price on Cinemark in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Cinemark presently has an average rating of "Moderate Buy" and a consensus price target of $37.93.

Cinemark Price Performance

The firm has a 50-day simple moving average of $36.38 and a two-hundred day simple moving average of $32.54. The company has a market capitalization of $4.49 billion, a price-to-earnings ratio of 22.94 and a beta of 1.03. The company has a current ratio of 0.84, a quick ratio of 0.81 and a debt-to-equity ratio of 3.87.

Cinemark (NYSE:CNK - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.19 earnings per share (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 the consensus estimate of $1.03 billion. During the same period in the previous year, the company posted $0.63 earnings per share. Cinemark's revenue for the quarter was up 15.5% on a year-over-year basis. As a group, analysts predict that Cinemark Holdings Inc will post 2.49 earnings per share 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 issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, August 26th. Cinemark's payout ratio is 21.30%.

Institutional Trading of Cinemark

Hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio purchased a new position in Cinemark during the second quarter valued at $32,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Cinemark in the second quarter valued at about $60,000. Nykredit A S purchased a new stake in shares of Cinemark during the second quarter worth about $135,000. KBC Group NV increased its stake in shares of Cinemark by 56.9% during the first quarter. KBC Group NV now owns 4,334 shares of the company's stock worth $124,000 after purchasing an additional 1,572 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in shares of Cinemark by 10.2% during the second quarter. GAMMA Investing LLC now owns 4,982 shares of the company's stock worth $158,000 after purchasing an additional 462 shares in the last quarter.

About Cinemark

Cinemark Holdings, Inc is a motion picture exhibition company that operates movie theaters in the United States and Latin America. Through its Cinemark and other regional theater brands, the company shows first-run films and provides audiences with large-format entertainment experiences.

Cinemark's services include movie ticketing, food and beverage concessions, premium seating, and enhanced presentation formats such as its XD auditoriums. The company also offers customer loyalty programs, advertising opportunities, private theater rentals, and other event-based entertainment services.

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

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