Cinemark (NYSE:CNK) Shares Gap Up Following Dividend Announcement

Cinemark Holdings Inc (NYSE:CNK) shares gapped up before the market opened on Wednesday following a dividend announcement from the company. The stock had previously closed at $26.75, but opened at $29.01. Cinemark shares last traded at $28.2280, with a volume of 664,649 shares trading hands.

The newly announced dividend which will be paid on Friday, December 12th. Investors of record on Friday, November 28th will be paid a dividend of $0.09 per share. This is an increase from Cinemark’s previous quarterly dividend of $0.08. This represents a $0.36 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, November 28th. Cinemark’s dividend payout ratio is presently 17.49%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Morgan Stanley decreased their target price on shares of Cinemark from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Tuesday, October 21st. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $33.00 price target (down previously from $36.00) on shares of Cinemark in a report on Monday, August 4th. Wall Street Zen raised Cinemark from a “sell” rating to a “hold” rating in a research note on Sunday, August 10th. JPMorgan Chase & Co. cut their price target on shares of Cinemark from $38.00 to $37.00 and set an “overweight” rating for the company in a research note on Thursday. Finally, Wedbush raised shares of Cinemark from a “neutral” rating to an “outperform” rating and increased their price target for the stock from $32.00 to $37.00 in a report on Friday, July 11th. Nine analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $35.30.

Cinemark Price Performance

The firm has a market capitalization of $3.28 billion, a P/E ratio of 15.58, a PEG ratio of 1.96 and a beta of 1.69. The business’s 50-day simple moving average is $27.19 and its 200 day simple moving average is $28.79. The company has a quick ratio of 0.88, a current ratio of 0.91 and a debt-to-equity ratio of 4.32.

Cinemark (NYSE:CNK) last issued its earnings results on Wednesday, November 5th. The company reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.04). Cinemark had a return on equity of 59.16% and a net margin of 9.13%.The business had revenue of $857.50 million during the quarter, compared to analysts’ expectations of $851.47 million. During the same quarter in the previous year, the business earned $1.19 EPS. Cinemark’s revenue for the quarter was down 7.0% compared to the same quarter last year. Sell-side analysts forecast that Cinemark Holdings Inc will post 1.93 earnings per share for the current year.

Insider Buying and Selling at Cinemark

In other news, EVP Melissa Thomas sold 7,200 shares of the stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $25.17, for a total value of $181,224.00. Following the completion of the transaction, the executive vice president owned 203,768 shares of the company’s stock, valued at approximately $5,128,840.56. This represents a 3.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.30% of the company’s stock.

Institutional Trading of Cinemark

A number of institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its holdings in Cinemark by 118.5% in the second quarter. EverSource Wealth Advisors LLC now owns 935 shares of the company’s stock worth $28,000 after purchasing an additional 507 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in Cinemark during the second quarter valued at $47,000. Financial Consulate Inc. bought a new position in Cinemark in the third quarter valued at about $50,000. Meeder Asset Management Inc. purchased a new position in Cinemark in the third quarter worth about $63,000. Finally, Smartleaf Asset Management LLC boosted its position in Cinemark by 20.1% in the third quarter. Smartleaf Asset Management LLC now owns 3,027 shares of the company’s stock worth $83,000 after purchasing an additional 506 shares during the last quarter.

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.