Cineplex (TSE:CGX) Share Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Cineplex shares rose above their 200-day moving average, reaching C$12.50 before closing at C$12.23, compared with the moving average of C$11.22.
• Analyst sentiment is broadly positive: Cineplex has a consensus “Buy” rating and an average price target of C$13.83, with several firms recently raising their targets to C$14.00.
• The company reported quarterly revenue of C$383.72 million and EPS of C$0.12, but continues to show a negative net margin and weak liquidity ratios, including a current ratio of 0.44.

Cineplex Inc. (TSE:CGX - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$11.22 and traded as high as C$12.50. Cineplex shares last traded at C$12.23, with a volume of 351,929 shares changing hands.

Analyst Ratings Changes

Several brokerages have weighed in on CGX. Scotiabank lifted their target price on Cineplex from C$12.00 to C$13.50 and gave the company a "sector outperform" rating in a research note on Wednesday, August 12th. National Bank Financial increased their price target on Cineplex from C$13.50 to C$14.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Royal Bank Of Canada raised their price target on Cineplex from C$13.00 to C$14.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Canaccord Genuity Group lifted their price objective on shares of Cineplex from C$10.50 to C$11.50 and gave the company a "hold" rating in a research note on Tuesday, May 12th. Finally, TD Securities upgraded shares of Cineplex to a "strong-buy" rating in a research note on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of C$13.83.

Cineplex Stock Down 2.2%

The firm's fifty day moving average price is C$12.08 and its 200-day moving average price is C$11.22. 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 firm has a market capitalization of C$770.53 million, a P/E ratio of -61.15, a PEG ratio of 0.30 and a beta of 0.36.

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

About Cineplex

Cineplex is a diversified media company that operates chains of movie theaters. The company has four reporting segments: film entertainment and content; media; amusement and leisure; and location-based entertainment. The film entertainment and content segment includes revenue from theater attendance. The media segment includes cinema media and digital place-based media operations. The amusement and leisure reporting segment manages the operation and distribution of gaming and vending equipment. Formerly housed in the amusement and leisure segment, the location-based entertainment business derives revenue from entertainment restaurant chains like The Rec Room and Playdium.

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