Cineverse (NASDAQ:CNVS) Downgraded by Wall Street Zen to Sell

Wall Street Zen downgraded shares of Cineverse (NASDAQ:CNVS) from a hold rating to a sell rating in a report issued on Saturday,Wall Street Zen reports.

A number of other research analysts have also recently weighed in on the stock. Benchmark reaffirmed a “buy” rating and set a $14.00 price target (up from $12.00) on shares of Cineverse in a research report on Friday, August 14th. Weiss Ratings reissued a “sell (d)” rating on shares of Cineverse in a research report on Friday, October 2nd. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $14.00.

Cineverse Trading Up 23.8%

Shares of Cineverse stock traded up $0.43 during trading hours on Friday, reaching $2.24. The stock had a trading volume of 2,051,499 shares, compared to its average volume of 110,220. The firm has a 50 day simple moving average of $1.85 and a two-hundred day simple moving average of $2.38. The firm has a market capitalization of $59.65 million, a price-to-earnings ratio of -3.80 and a beta of 1.81. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.34. Cineverse has a 1 year low of $1.40 and a 1 year high of $3.44.

Cineverse (NASDAQ:CNVS) last issued its earnings results on Friday, November 13th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.23) by $0.34. The business had revenue of $25.95 million during the quarter, compared to analysts’ expectations of $24.31 million. Cineverse had a negative return on equity of 50.16% and a negative net margin of 12.87%.

Insider Activity

In related news, insider Mark Antonio Huidor sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $2.68, for a total transaction of $40,200.00. Following the sale, the insider directly owned 183,170 shares in the company, valued at approximately $490,895.60. This trade represents a 7.57% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 10.80% of the company’s stock.

Institutional Trading of Cineverse

Several large investors have recently bought and sold shares of the company. AXQ Capital LP purchased a new stake in shares of Cineverse during the second quarter valued at approximately $31,000. StoneX Group Inc. acquired a new position in shares of Cineverse during the third quarter worth $86,000. Corient Private Wealth LP boosted its stake in shares of Cineverse by 15.7% in the second quarter. Corient Private Wealth LP now owns 551,249 shares of the company’s stock valued at $1,637,000 after purchasing an additional 75,000 shares during the period. Finally, Corsair Capital Management L.P. boosted its stake in shares of Cineverse by 45.7% in the first quarter. Corsair Capital Management L.P. now owns 1,119,650 shares of the company’s stock valued at $2,687,000 after purchasing an additional 351,000 shares during the period. Institutional investors and hedge funds own 8.19% of the company’s stock.

Key Headlines Impacting Cineverse

Investors following CNVS have been watching these headlines:

• Positive Sentiment: Fiscal Q2 revenue rose 110% year over year to about $26.0 million, with more than half coming from technology-related revenue streams. Net income was $3.2 million, or $0.11 per diluted share, versus the analyst consensus for a loss of $0.23 per share. The earnings beat and return to quarterly profitability are key potential drivers of investor optimism. Cineverse Q2 results
• Neutral Sentiment: Cineverse reaffirmed its fiscal 2027 targets of $115 million–$120 million in revenue and $10 million–$20 million in adjusted EBITDA. The EBITDA goal offers a profitability target, while the revenue range is below the cited analyst consensus of $120.5 million. Cineverse guidance
• Neutral Sentiment: Cineverse’s IndiCue advertising platform is being brought to Cannella Media for its performance-based connected-TV business and direct programming media buying. This may broaden platform usage, though the announcement provided no financial terms or expected revenue contribution. IndiCue and Cannella Media announcement

About Cineverse

Cineverse is a digital entertainment company that develops and distributes films, television programs and other video content. Its activities include operating streaming services and ad-supported channels, licensing content, and providing distribution and technology services to entertainment partners. The company’s offerings include the Cineverse streaming platform and genre-focused brands such as Screambox and Bloody Disgusting. Its Matchpoint technology platform supports the delivery and management of streaming content, while its distribution business works with content owners and filmmakers to bring titles to audiences.