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

Cinemark Holdings, Inc. (NYSE:CNK) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $29.89, but opened at $28.95. Cinemark shares last traded at $29.92, with a volume of 765,225 shares trading hands.

The company reported ($0.32) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.21). Cinemark had a net margin of 10.16% and a return on equity of 65.83%. The firm had revenue of $540.70 million during the quarter, compared to analysts’ expectations of $604.62 million. During the same period in the prior year, the company posted $0.19 EPS. The company’s revenue was down 6.6% compared to the same quarter last year.

Cinemark Announces Dividend

The firm also recently declared a — dividend, which was paid on Wednesday, March 19th. Stockholders of record on Wednesday, March 5th were issued a $0.08 dividend. The ex-dividend date of this dividend was Wednesday, March 5th. Cinemark’s payout ratio is 15.76%.

Analyst Ratings Changes

CNK has been the topic of a number of recent analyst reports. Wells Fargo & Company reduced their target price on Cinemark from $38.00 to $36.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 29th. Benchmark reduced their price target on shares of Cinemark from $40.00 to $35.00 and set a “buy” rating on the stock in a research note on Thursday, February 20th. Macquarie reissued an “outperform” rating and issued a $35.00 price objective on shares of Cinemark in a research report on Thursday, February 20th. Morgan Stanley lowered their price target on Cinemark from $40.00 to $35.00 and set an “overweight” rating for the company in a report on Thursday, February 20th. Finally, JPMorgan Chase & Co. upgraded Cinemark from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $30.00 to $34.00 in a report on Friday, April 11th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Cinemark presently has a consensus rating of “Moderate Buy” and a consensus target price of $33.10.

Insiders Place Their Bets

In other news, insider Wanda Marie Gierhart sold 9,119 shares of the company’s stock in a transaction on Tuesday, February 25th. The stock was sold at an average price of $27.00, for a total transaction of $246,213.00. Following the transaction, the insider now directly owns 147,414 shares of the company’s stock, valued at approximately $3,980,178. This represents a 5.83 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Franklin Resources Inc. grew its stake in shares of Cinemark by 6.8% during the third quarter. Franklin Resources Inc. now owns 56,757 shares of the company’s stock worth $1,651,000 after acquiring an additional 3,632 shares during the last quarter. Principal Financial Group Inc. grew its position in Cinemark by 18.8% during the 3rd quarter. Principal Financial Group Inc. now owns 629,782 shares of the company’s stock worth $17,533,000 after purchasing an additional 99,843 shares during the last quarter. GAMMA Investing LLC increased its stake in Cinemark by 44.9% during the 4th quarter. GAMMA Investing LLC now owns 2,926 shares of the company’s stock valued at $91,000 after purchasing an additional 906 shares in the last quarter. Ritholtz Wealth Management increased its stake in Cinemark by 104.5% during the 4th quarter. Ritholtz Wealth Management now owns 35,953 shares of the company’s stock valued at $1,114,000 after purchasing an additional 18,371 shares in the last quarter. Finally, Decker Retirement Planning Inc. purchased a new position in shares of Cinemark in the fourth quarter worth $4,725,000.

Cinemark Stock Up 1.4 %

The firm has a market capitalization of $3.57 billion, a price-to-earnings ratio of 14.93 and a beta of 2.07. The company has a quick ratio of 0.96, a current ratio of 1.01 and a debt-to-equity ratio of 3.28. The company’s 50 day moving average price is $26.40 and its 200 day moving average price is $29.32.

Cinemark Company Profile

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.