Cinemark (NYSE:CNK) Shares Gap Down on Disappointing Earnings

Cinemark Holdings, Inc. (NYSE:CNK)’s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $33.06, but opened at $31.20. Cinemark shares last traded at $28.08, with a volume of 1,764,428 shares changing hands.

The company reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.06). The business had revenue of $814.30 million during the quarter, compared to analysts’ expectations of $797.18 million. Cinemark had a return on equity of 60.21% and a net margin of 8.36%. The firm’s revenue was up 27.5% compared to the same quarter last year. During the same period last year, the company earned ($0.15) earnings per share.

Wall Street Analyst Weigh In

CNK has been the topic of several recent research reports. Barrington Research restated an “outperform” rating and issued a $40.00 price objective on shares of Cinemark in a research report on Wednesday. Macquarie raised their price objective on Cinemark from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Friday, November 1st. Wells Fargo & Company cut 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. Wedbush restated a “neutral” rating and set a $32.00 target price on shares of Cinemark in a report on Tuesday. Finally, StockNews.com upgraded Cinemark from a “sell” rating to a “hold” rating in a research note on Sunday, November 10th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $33.20.

Institutional Investors Weigh In On Cinemark

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of Cinemark by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 12,505,099 shares of the company’s stock valued at $387,408,000 after purchasing an additional 109,179 shares during the period. Candlestick Capital Management LP increased its holdings in Cinemark by 48.1% during the 4th quarter. Candlestick Capital Management LP now owns 4,931,618 shares of the company’s stock worth $152,782,000 after purchasing an additional 1,601,537 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Cinemark by 100.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,104,552 shares of the company’s stock worth $127,159,000 after purchasing an additional 2,054,579 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Cinemark by 12.8% in the 4th quarter. Renaissance Technologies LLC now owns 3,801,578 shares of the company’s stock valued at $117,773,000 after acquiring an additional 430,006 shares in the last quarter. Finally, Marshall Wace LLP grew its holdings in shares of Cinemark by 14.5% in the 4th quarter. Marshall Wace LLP now owns 3,124,834 shares of the company’s stock valued at $96,807,000 after acquiring an additional 396,720 shares in the last quarter.

Cinemark Price Performance

The company has a quick ratio of 0.96, a current ratio of 0.98 and a debt-to-equity ratio of 3.46. The firm has a market cap of $3.49 billion, a P/E ratio of 18.41 and a beta of 2.38. The business has a fifty day moving average of $30.44 and a 200 day moving average of $29.76.

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.