Traders Purchase Large Volume of Cinemark Call Options (NYSE:CNK)

Cinemark Holdings, Inc. (NYSE:CNK) was the target of unusually large options trading on Tuesday. Stock traders purchased 16,649 call options on the stock. This is an increase of 597% compared to the average daily volume of 2,387 call options.

Cinemark Stock Performance

Shares of Cinemark stock opened at $33.58 on Wednesday. The company has a market cap of $3.86 billion, a PE ratio of 16.54 and a beta of 1.91. The company has a current ratio of 1.01, a quick ratio of 0.96 and a debt-to-equity ratio of 3.28. The company has a 50 day moving average of $28.71 and a 200-day moving average of $29.56. Cinemark has a 1-year low of $16.32 and a 1-year high of $36.28.

Cinemark (NYSE:CNK) last released its quarterly earnings results on Friday, May 2nd. The company reported ($0.32) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.32). The firm had revenue of $540.70 million during the quarter, compared to the consensus estimate of $604.62 million. Cinemark had a net margin of 10.16% and a return on equity of 65.83%. The company’s revenue for the quarter was down 6.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.19 earnings per share. As a group, equities research analysts forecast that Cinemark will post 1.93 earnings per share for the current fiscal year.

Cinemark Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 29th will be given a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 0.95%. The ex-dividend date of this dividend is Thursday, May 29th. Cinemark’s dividend payout ratio is 21.05%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on CNK shares. Macquarie restated an “outperform” rating and set a $35.00 price objective on shares of Cinemark in a report on Thursday, February 20th. Wells Fargo & Company reduced their price objective on Cinemark from $38.00 to $36.00 and set an “overweight” rating for the company in a research report on Wednesday, January 29th. Benchmark cut their price objective on Cinemark from $40.00 to $35.00 and set a “buy” rating for the company in a research report on Thursday, February 20th. JPMorgan Chase & Co. upped their price target on shares of Cinemark from $34.00 to $35.00 and gave the stock an “overweight” rating in a research note on Monday, May 5th. Finally, Barrington Research reissued an “outperform” rating and set a $36.00 target price on shares of Cinemark in a research report on Monday, May 5th. One investment 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 stock. Based on data from MarketBeat.com, Cinemark has a consensus rating of “Moderate Buy” and a consensus price target of $33.20.

Insider Transactions at Cinemark

In other news, EVP Melissa Thomas sold 7,200 shares of the stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $31.43, for a total transaction of $226,296.00. Following the completion of the transaction, the executive vice president now directly owns 210,968 shares of the company’s stock, valued at approximately $6,630,724.24. This represents a 3.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 2.10% of the company’s stock.

Institutional Trading of Cinemark

Hedge funds and other institutional investors have recently modified their holdings of the business. Elequin Capital LP increased its holdings in shares of Cinemark by 211.6% in the 4th quarter. Elequin Capital LP now owns 997 shares of the company’s stock worth $31,000 after buying an additional 677 shares during the last quarter. Russell Investments Group Ltd. boosted its position in Cinemark by 402.4% during the 4th quarter. Russell Investments Group Ltd. now owns 1,030 shares of the company’s stock valued at $32,000 after buying an additional 825 shares during the period. Aster Capital Management DIFC Ltd boosted its position in Cinemark by 380.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,896 shares of the company’s stock valued at $59,000 after buying an additional 1,501 shares during the period. R Squared Ltd purchased a new stake in Cinemark during the 4th quarter valued at $63,000. Finally, Quarry LP boosted its position in Cinemark by 41.8% during the 4th quarter. Quarry LP now owns 2,114 shares of the company’s stock valued at $65,000 after buying an additional 623 shares during the period.

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.