Cinemark (NYSE:CNK) Trading Down 5.7% After Earnings Miss

Cinemark Holdings Inc (NYSE:CNK)’s share price was down 5.7% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $27.60 and last traded at $27.85. Approximately 712,907 shares changed hands during trading, a decline of 70% from the average daily volume of 2,393,678 shares. The stock had previously closed at $29.52.

The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $643.10 million during the quarter, compared to analysts’ expectations of $632.74 million. Cinemark had a net margin of 4.44% and a return on equity of 34.11%. The business’s quarterly revenue was up 18.9% on a year-over-year basis. During the same quarter last year, the business earned ($0.32) earnings per share.

Cinemark Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Tuesday, March 3rd. Cinemark’s payout ratio is 41.38%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on CNK shares. Macquarie Infrastructure lowered their price objective on Cinemark from $36.00 to $34.00 and set an “outperform” rating on the stock in a report on Thursday, January 15th. Moffett Nathanson upgraded Cinemark from a “neutral” rating to a “buy” rating and set a $30.00 price target on the stock in a research note on Tuesday, January 20th. Wall Street Zen raised shares of Cinemark from a “sell” rating to a “hold” rating in a research note on Saturday, February 21st. Benchmark reaffirmed a “buy” rating on shares of Cinemark in a research note on Thursday, February 19th. Finally, Roth Mkm reaffirmed a “buy” rating and set a $37.00 price target on shares of Cinemark in a research note on Thursday, April 23rd. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Cinemark has an average rating of “Moderate Buy” and an average price target of $32.92.

Insider Transactions at Cinemark

In related news, EVP Melissa Thomas sold 7,944 shares of Cinemark stock in a transaction 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 transaction, the executive vice president directly owned 159,416 shares of the company’s stock, valued at approximately $4,152,786.80. The trade was a 4.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 2.40% of the company’s stock.

Hedge Funds Weigh In On Cinemark

Several hedge funds and other institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Cinemark by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 65,699 shares of the company’s stock worth $1,635,000 after acquiring an additional 2,872 shares during the last quarter. Woodline Partners LP purchased a new stake in Cinemark during the 1st quarter worth about $570,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised 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 purchasing an additional 25,490 shares during the last quarter. Acadian Asset Management LLC acquired a new position in Cinemark in the 1st quarter valued at about $372,000. Finally, Russell Investments Group Ltd. raised its stake in Cinemark by 48.0% in the 2nd quarter. Russell Investments Group Ltd. now owns 5,228 shares of the company’s stock valued at $158,000 after purchasing an additional 1,696 shares during the last quarter.

Cinemark Stock Down 4.7%

The firm’s 50 day moving average is $28.22 and its two-hundred day moving average is $26.41. The stock has a market cap of $3.29 billion, a price-to-earnings ratio of 31.91 and a beta of 1.09. The company has a current ratio of 0.71, a quick ratio of 0.67 and a debt-to-equity ratio of 4.74.

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.