Cinemark (NYSE:CNK) Shares Gap Down Following Weak Earnings

Shares of Cinemark Holdings Inc (NYSE:CNK) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.36, but opened at $23.91. Cinemark shares last traded at $26.57, with a volume of 1,838,966 shares.

The company reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.29). The firm had revenue of $776.30 million during the quarter, compared to analyst estimates of $778.41 million. Cinemark had a return on equity of 34.33% and a net margin of 4.93%.Cinemark’s revenue for the quarter was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.33 earnings per share.

Analysts Set New Price Targets

Several equities analysts recently weighed in on CNK shares. Barrington Research cut their price objective on shares of Cinemark from $36.00 to $32.00 and set an “outperform” rating on the stock in a report on Monday, January 26th. JPMorgan Chase & Co. cut their price target on Cinemark from $37.00 to $31.00 and set an “overweight” rating on the stock in a research note on Thursday, January 22nd. Roth Mkm restated a “buy” rating and issued a $35.00 price target on shares of Cinemark in a research report on Wednesday, November 5th. Macquarie Infrastructure dropped their price objective on Cinemark from $36.00 to $34.00 and set an “outperform” rating for the company in a report on Thursday, January 15th. Finally, B. Riley Financial reduced their target price on Cinemark from $35.00 to $29.00 and set a “neutral” rating on the stock in a report on Thursday, January 22nd. Ten investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $32.83.

Insider Activity at Cinemark

In related news, EVP Melissa Thomas sold 7,944 shares of the stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $26.05, for a total transaction of $206,941.20. Following the completion of the sale, the executive vice president directly owned 159,416 shares of the company’s stock, valued at approximately $4,152,786.80. This represents a 4.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cinemark

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Cinemark by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 65,699 shares of the company’s stock worth $1,635,000 after purchasing an additional 2,872 shares in the last quarter. Woodline Partners LP acquired a new stake in Cinemark in the 1st quarter valued at approximately $570,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Cinemark by 8.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 345,258 shares of the company’s stock valued at $8,593,000 after acquiring an additional 25,490 shares in the last quarter. Acadian Asset Management LLC acquired a new position in Cinemark during the 1st quarter worth approximately $372,000. Finally, CWM LLC grew its stake in shares of Cinemark by 29.2% during the 2nd quarter. CWM LLC now owns 8,458 shares of the company’s stock worth $255,000 after acquiring an additional 1,910 shares in the last quarter.

Cinemark Stock Up 4.7%

The company has a current ratio of 0.76, a quick ratio of 0.72 and a debt-to-equity ratio of 5.01. The company has a market capitalization of $3.12 billion, a P/E ratio of 25.55, a PEG ratio of 2.46 and a beta of 1.13. The firm’s 50 day moving average price is $23.87 and its two-hundred day moving average price is $25.87.

Cinemark Company Profile

Cinemark Holdings, Inc (NYSE: CNK) is a leading theatrical exhibitor that acquires, develops and operates motion picture theatres under the Cinemark® brand in the United States and Latin America. The company’s core business involves the presentation of first-run feature films coupled with an array of in‐theatre services, including concessions, premium auditoriums and loyalty programs. Cinemark’s exhibition portfolio encompasses both corporate‐owned and franchised complexes, offering moviegoers a range of experiences from standard screens to large‐format halls.

The company’s product offerings extend beyond ticket sales to include an assortment of concession items, such as popcorn, fountain beverages, candy and specialty snacks, as well as bar and lounge concepts in select locations.