Cinemark (NYSE:CNK) Sets New 1-Year High - Still a Buy?

Key Points

• Cinemark shares reached a new 52-week high, trading as high as $41.67 after closing at $40.89 in the previous session.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $39.57; Wedbush recently raised its target to $46, while the average target is below the stock’s latest price.
• In its latest quarter, Cinemark beat estimates with EPS of $1.04 versus $0.98 expected and revenue of $1.06 billion, up 23.5% year over year.

Cinemark Holdings Inc (NYSE:CNK - Get Free Report) shares hit a new 52-week high on Tuesday. The company traded as high as $41.67 and last traded at $41.49, with a volume of 891,503 shares changing hands. The stock had previously closed at $40.89.

Wall Street Analysts Forecast Growth

CNK has been the subject of a number of research analyst reports. Wedbush lifted their target price on Cinemark from $45.00 to $46.00 and gave the company an "outperform" rating in a research report on Wednesday, November 4th. Barrington Research set a $42.00 target price on shares of Cinemark in a report on Thursday, July 30th. Wall Street Zen cut shares of Cinemark from a "strong-buy" rating to a "buy" rating in a report on Saturday. Benchmark raised their target price 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. Finally, Zacks Research raised shares of Cinemark from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $39.57.

Cinemark Stock Performance

The company has a quick ratio of 0.81, a current ratio of 0.94 and a debt-to-equity ratio of 3.13. The stock has a market capitalization of $4.81 billion, a PE ratio of 17.82 and a beta of 1.07. The firm has a 50 day moving average price of $37.23 and a 200-day moving average price of $31.73.

Cinemark (NYSE:CNK - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.06. The company had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.04 billion. Cinemark had a net margin of 8.13% and a return on equity of 60.04%. Cinemark's revenue for the quarter was up 23.5% compared to the same quarter last year. During the same period last year, the firm posted $0.40 EPS. Research analysts expect that Cinemark Holdings Inc will post 2.75 EPS for the current fiscal year.

Cinemark Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Wednesday, August 26th were given a dividend of $0.09 per share. The ex-dividend date was Wednesday, August 26th. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. Cinemark's dividend payout ratio is currently 15.45%.

Institutional Investors Weigh In On Cinemark

Several institutional investors have recently bought and sold shares of CNK. BlackRock Inc. acquired a new position in shares of Cinemark during the 2nd quarter worth approximately $530,855,000. Park West Asset Management LLC acquired a new stake in Cinemark in the 2nd quarter valued at approximately $40,707,000. Bank of New York Mellon Corp acquired a new stake in Cinemark in the 2nd quarter valued at approximately $29,387,000. Bank of America Corp DE raised its holdings in shares of Cinemark by 115.1% in the 1st quarter. Bank of America Corp DE now owns 831,389 shares of the company's stock valued at $23,711,000 after buying an additional 444,965 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Cinemark in the 2nd quarter valued at $22,657,000.

About Cinemark

Cinemark Holdings, Inc. operates movie theaters in the United States and Latin America. Its theaters screen feature films and offer related entertainment experiences, including premium large-format presentations and in-theater amenities. The company operates under brands including Cinemark, Century Theatres and Tinseltown. Its services include concessions, advertising, private events and its Cinemark Movie Club subscription program. Cinemark traces its roots to 1984 and is headquartered in Plano, Texas.

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