Cineplex (TSE:CGX) Share Price Breaks Above 200 Day Moving Average - Here's Why

Key Points

• Cineplex shares rose above their 200-day moving average, reaching C$12.41 and closing at C$12.35 versus the C$11.70 average.
• Analysts have become more optimistic, with recent upgrades and higher price targets. Cineplex has an average “Buy” rating and a consensus target of C$14.00.
• The company reported quarterly EPS of C$0.12 on revenue of C$383.72 million, though it posted a negative net margin of 0.96% and maintains weak liquidity ratios.

Cineplex Inc. (TSE:CGX - Get Free Report)'s stock price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of C$11.70 and traded as high as C$12.41. Cineplex shares last traded at C$12.35, with a volume of 88,279 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Scotiabank upped their price objective on shares of Cineplex from C$12.00 to C$13.50 and gave the stock a "sector outperform" rating in a research report on Wednesday, August 12th. TD Securities raised shares of Cineplex to a "strong-buy" rating in a research note on Friday, July 24th. Royal Bank Of Canada raised their price objective on shares of Cineplex from C$14.00 to C$15.00 and gave the company an "outperform" rating in a research report on Tuesday, September 15th. Finally, National Bank Financial lifted their price objective on shares of Cineplex from C$13.50 to C$14.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Cineplex has an average rating of "Buy" and a consensus price target of C$14.00.

Cineplex Stock Performance

The company has a debt-to-equity ratio of -1,865.57, a current ratio of 0.44 and a quick ratio of 0.22. The company has a 50 day simple moving average of C$12.46 and a 200-day simple moving average of C$11.70. The firm has a market cap of C$778.09 million, a PE ratio of -61.75, a price-to-earnings-growth ratio of 0.30 and a beta of 0.35.

Cineplex (TSE:CGX - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported C$0.12 EPS for the quarter. The firm had revenue of C$383.72 million for the quarter. Cineplex had a negative net margin of 0.96% and a positive return on equity of 14.84%. As a group, equities research analysts anticipate that Cineplex Inc. will post 1.0754912 EPS for the current year.

About Cineplex

Cineplex TSX: CGX is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of 169 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room), complexes specially designed for teens and families (Playdium), and an entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion).

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