Short Interest in Cineverse Corp. (NASDAQ:CNVS) Decreases By 39.2%

Key Points

• Short interest in Cineverse fell by 39.2% in February to 540,657 shares, equal to 2.9% of the float and a short-interest ratio of 0.9 days.
• Insiders have been net buyers, acquiring 187,500 shares over the past 90 days (including two 30,000-share buys at $2.00), boosting insider ownership to 13.30%.
• Cineverse missed its latest quarter (EPS -$0.05 vs. -$0.03 estimate; revenue $16.29M vs. $20.0M), and the stock trades near $2.60 with a market cap of about $55.4M and an average analyst price target of $9 (consensus: Hold).

Cineverse Corp. (NASDAQ:CNVS - Get Free Report) was the target of a large decrease in short interest in the month of February. As of February 27th, there was short interest totaling 540,657 shares, a decrease of 39.2% from the February 12th total of 889,859 shares. Currently, 2.9% of the shares of the stock are sold short. Based on an average trading volume of 581,051 shares, the short-interest ratio is currently 0.9 days. Based on an average trading volume of 581,051 shares, the short-interest ratio is currently 0.9 days. Currently, 2.9% of the shares of the stock are sold short.

Cineverse Stock Performance

Shares of NASDAQ CNVS traded down $0.10 during midday trading on Friday, hitting $2.60. 120,654 shares of the company traded hands, compared to its average volume of 287,791. Cineverse has a 12-month low of $1.77 and a 12-month high of $7.39. The firm has a market cap of $55.38 million, a P/E ratio of -4.91 and a beta of 1.55. The stock has a 50-day moving average price of $2.40 and a 200 day moving average price of $2.80.

Cineverse (NASDAQ:CNVS - Get Free Report) last posted its quarterly earnings data on Tuesday, February 17th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.02). The firm had revenue of $16.29 million for the quarter, compared to the consensus estimate of $20.00 million. Cineverse had a negative net margin of 16.67% and a negative return on equity of 27.40%.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on CNVS shares. Alliance Global Partners reaffirmed a "buy" rating on shares of Cineverse in a research note on Wednesday, February 18th. Benchmark restated a "speculative buy" rating on shares of Cineverse in a report on Monday, November 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cineverse in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $9.00.

Insiders Place Their Bets

In related news, insider Yolanda Macias bought 30,000 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were acquired at an average cost of $2.00 per share, with a total value of $60,000.00. Following the completion of the purchase, the insider directly owned 121,760 shares of the company's stock, valued at $243,520. This trade represents a 32.69% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Erick Opeka acquired 30,000 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average price of $2.00 per share, for a total transaction of $60,000.00. Following the transaction, the insider owned 224,146 shares in the company, valued at approximately $448,292. This represents a 15.45% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 187,500 shares of company stock worth $375,000. Company insiders own 13.30% of the company's stock.

Hedge Funds Weigh In On Cineverse

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Hillsdale Investment Management Inc. purchased a new position in shares of Cineverse during the second quarter valued at approximately $48,000. Sugar Maple Asset Management LLC purchased a new stake in shares of Cineverse in the 3rd quarter worth approximately $42,000. Kathmere Capital Management LLC bought a new position in Cineverse during the 3rd quarter valued at approximately $44,000. StoneX Group Inc. purchased a new position in Cineverse during the fourth quarter valued at $30,000. Finally, Prelude Capital Management LLC raised its stake in Cineverse by 31.1% during the third quarter. Prelude Capital Management LLC now owns 17,037 shares of the company's stock valued at $57,000 after buying an additional 4,037 shares during the last quarter. Institutional investors own 8.19% of the company's stock.

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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