Cinemark (NYSE:CNK) Trading Down 5.5% – Here’s What Happened

Cinemark Holdings Inc (NYSE:CNK)’s stock price traded down 5.5% on Wednesday . The stock traded as low as $24.15 and last traded at $23.8560. 955,487 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,782,178 shares. The stock had previously closed at $25.25.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Zacks Research raised shares of Cinemark from a “strong sell” rating to a “hold” rating in a report on Friday, October 3rd. Roth Capital restated a “buy” rating and issued a $35.00 target price on shares of Cinemark in a research note on Wednesday, November 5th. Morgan Stanley dropped their target price on Cinemark from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Tuesday, October 21st. JPMorgan Chase & Co. decreased their price target on Cinemark from $38.00 to $37.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Finally, Barrington Research reaffirmed an “outperform” rating and set a $36.00 price objective on shares of Cinemark in a research note on Tuesday, September 23rd. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $35.30.

Cinemark Stock Down 6.1%

The firm has a 50-day moving average of $27.69 and a two-hundred day moving average of $28.58. The company has a quick ratio of 0.72, a current ratio of 0.76 and a debt-to-equity ratio of 5.01. The company has a market capitalization of $2.78 billion, a PE ratio of 22.86, a price-to-earnings-growth ratio of 2.54 and a beta of 1.10.

Cinemark (NYSE:CNK) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.40 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.04). Cinemark had a return on equity of 34.33% and a net margin of 4.93%.The company had revenue of $857.50 million during the quarter, compared to analyst estimates of $851.47 million. During the same quarter in the prior year, the company posted $1.19 earnings per share. The business’s revenue was down 7.0% compared to the same quarter last year. Equities research analysts predict that Cinemark Holdings Inc will post 1.93 earnings per share for the current fiscal year.

Cinemark Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 12th. Investors of record on Friday, November 28th will be paid a dividend of $0.09 per share. The ex-dividend date is Friday, November 28th. This is a positive change from Cinemark’s previous quarterly dividend of $0.08. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.5%. Cinemark’s payout ratio is currently 34.62%.

Institutional Trading of Cinemark

Hedge funds and other institutional investors have recently bought and sold shares of the business. CIBC Bancorp USA Inc. acquired a new stake in shares of Cinemark in the third quarter valued at approximately $311,000. Advisory Services Network LLC lifted its stake in shares of Cinemark by 7.9% during the third quarter. Advisory Services Network LLC now owns 88,750 shares of the company’s stock worth $2,487,000 after purchasing an additional 6,526 shares in the last quarter. Marathon Asset Management LP purchased a new position in shares of Cinemark in the third quarter valued at $8,406,000. Jacobs Levy Equity Management Inc. purchased a new position in Cinemark in the third quarter valued at about $2,290,000. Finally, Armistice Capital LLC acquired a new stake in shares of Cinemark during the third quarter worth approximately $912,000.

About Cinemark

Cinemark Holdings, Inc, together with its subsidiaries, engages in the motion picture exhibition business. As of February 16, 2024, it operated 501 theatres with 5,719 screens in 42 states and 13 countries in South and Central America. Cinemark Holdings, Inc was founded in 1984 and is headquartered in Plano, Texas.