Cineplex (TSE:CGX) Share Price Breaks Above 200 Day Moving Average - Time to Sell?

Key Points

• Cineplex shares broke above their 200-day moving average, reaching C$13.08 before closing at C$12.79, compared with a 200-day average of C$11.81.
• Analysts have become more bullish, with several firms raising price targets; the stock carries an average “Buy” rating and a consensus target of C$14.00.
• Cineplex reported C$0.12 in quarterly earnings per share and C$383.72 million in revenue, but its weak liquidity ratios, negative net margin, and high valuation risk remain concerns.

Shares of Cineplex Inc. (TSE:CGX - Get Free Report) passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of C$11.81 and traded as high as C$13.08. Cineplex shares last traded at C$12.79, with a volume of 507,952 shares.

Analysts Set New Price Targets

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

Cineplex Stock Down 0.5%

The company's fifty day simple moving average is C$12.43 and its 200 day simple moving average is C$11.81. The company has a quick ratio of 0.22, a current ratio of 0.44 and a debt-to-equity ratio of -1,865.57. The firm has a market capitalization of C$805.81 million, a PE ratio of -63.95, a price-to-earnings-growth ratio of 0.30 and a beta of 0.35.

Cineplex (TSE:CGX - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported C$0.12 earnings per share for the quarter. Cineplex had a positive return on equity of 14.84% and a negative net margin of 0.96%. The firm had revenue of C$383.72 million for the quarter. Analysts anticipate that Cineplex Inc. will post 1.08 earnings per share for the current fiscal 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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.