Cineverse (NASDAQ:CNVS) Shares Down 0.9% - Time to Sell?

Key Points

• Cineverse shares fell 0.9% to $2.21 in Friday trading, with volume below average. The stock remains below its 50-day and 200-day moving averages and has a market capitalization of approximately $52.5 million.
• Analyst sentiment is mixed: two analysts rate Cineverse a “Buy” and one rates it a “Sell,” resulting in an overall “Hold” consensus and an average price target of $11.50.
• Cineverse’s latest quarter showed revenue of $30.59 million, above estimates, but an adjusted loss of $0.28 per share missed expectations. The company also reported negative profitability metrics, while an insider recently sold 15,000 shares.

Cineverse Corp. (NASDAQ:CNVS - Get Free Report)'s share price dropped 0.9% during trading on Friday . The company traded as low as $2.20 and last traded at $2.21. 110,693 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 125,520 shares. The stock had previously closed at $2.23.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Alliance Global Partners restated a "buy" rating on shares of Cineverse in a report on Friday, June 26th. Weiss Ratings raised shares of Cineverse from a "sell (d-)" rating to a "sell (d)" rating in a research note on Wednesday, July 8th. Wall Street Zen upgraded shares of Cineverse from a "strong sell" rating to a "hold" rating in a research report on Saturday, June 27th. Finally, Benchmark reiterated a "buy" rating and set a $14.00 price objective (up from $12.00) on shares of Cineverse in a research report on Friday, August 14th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $11.50.

Cineverse Trading Down 0.9%

The company's 50 day simple moving average is $2.54 and its 200-day simple moving average is $2.59. The firm has a market cap of $52.53 million, a P/E ratio of -3.75 and a beta of 1.48. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.34.

Cineverse (NASDAQ:CNVS - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.18) by ($0.10). Cineverse had a negative net margin of 12.87% and a negative return on equity of 50.16%. The business had revenue of $30.59 million for the quarter, compared to the consensus estimate of $25.67 million.

Insider Buying and Selling

In other Cineverse news, insider Mark Antonio Huidor sold 15,000 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $2.68, for a total value of $40,200.00. Following the transaction, the insider owned 183,170 shares of the company's stock, valued at $490,895.60. This represents a 7.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 12.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. AXQ Capital LP bought a new stake in Cineverse during the 2nd quarter valued at about $31,000. StoneX Group Inc. bought a new stake in shares of Cineverse during the fourth quarter valued at approximately $30,000. Prelude Capital Management LLC boosted its holdings in shares of Cineverse by 31.1% in the third quarter. Prelude Capital Management LLC now owns 17,037 shares of the company's stock valued at $57,000 after purchasing an additional 4,037 shares during the period. Cubist Systematic Strategies LLC bought a new position in Cineverse in the first quarter worth approximately $68,000. Finally, Osaic Holdings Inc. increased its holdings in Cineverse by 61.3% during the 2nd quarter. Osaic Holdings Inc. now owns 22,902 shares of the company's stock worth $109,000 after purchasing an additional 8,700 shares during the period. 8.19% of the stock is currently owned by institutional investors.

About Cineverse

Cineverse NASDAQ: CNVS, formerly known as Cinedigm, is a digital entertainment company that acquires, produces and distributes film and television content across a range of platforms. Through its streaming division, the company offers a portfolio of direct-to-consumer channels and apps—spanning genres such as horror, faith and family, documentaries and classic cinema—on both AVOD (ad-supported) and FAST (free ad-supported television) services. Cineverse also licenses its curated libraries to third-party streaming platforms, pay-TV operators and retail video-on-demand providers.

In addition to its consumer-facing streaming business, Cineverse operates a digital cinema network that supplies hardware, software and content delivery solutions to cinema exhibitors throughout North America.

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