Cinemark Holdings Stock Fair Value Calculation – Analysts Review Cinemark Holdings’ Rating as Insider Sells $0.68 Million Worth of Shares

October 9, 2024

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The company is known for its state-of-the-art theaters, offering customers an immersive movie-watching experience. It is also one of the largest movie theater chains in the world, generating billions of dollars in revenue each year. Recently, the company’s stock rating has come under scrutiny by analysts. This is typically done when there is a significant event or news that may impact the company’s financial performance. In this case, the news of a top executive selling shares has caught the attention of analysts. This can be considered a significant insider sale, as it represents a sizable portion of his holdings in the company. Insider sales like these can raise questions about the company’s future prospects and direction. It may also indicate that insiders, who have intimate knowledge of the company’s operations, do not have confidence in its stock performance. This can be a red flag for investors as insider transactions are closely monitored for indications of the company’s health and potential risks.

However, it is important to note that insider sales do not always equate to negative news for the company. Executives may sell shares for various reasons, such as diversifying their portfolio or raising funds for personal reasons. It is crucial to look at the bigger picture and consider other factors before making investment decisions based on insider transactions alone. Despite this insider sale, Cinemark Holdings ($NYSE:CNK) Inc. has been performing well in the market. The company’s stock has steadily increased over the past year and has a strong financial outlook for 2019. It is also important to note that insider sales do not necessarily reflect the company’s overall financial performance or potential for growth. In conclusion, while analysts may be reviewing Cinemark’s stock rating due to the recent insider sale, it is important for investors to consider all factors before making investment decisions. It is also crucial for the company to communicate effectively with its shareholders and address any concerns that may arise from such transactions. As always, thorough research and careful consideration should be done before making any investment in the stock market.

Share Price

On Tuesday, CINEMARK HOLDINGS saw a slight dip in its stock price, with shares opening at $26.9 and closing at $26.92. This represented a decrease of 0.19% from the previous day’s closing price of $26.97. This movement in the stock price caught the attention of analysts, who are closely monitoring the company’s performance. One possible reason for the stock’s decline could be the recent news of an insider selling a significant amount of shares. According to reports, an insider at CINEMARK HOLDINGS sold shares worth $0.68 million. This transaction raises questions about the confidence of the company’s own executives in its future performance. The timing of this insider selling is also notable, as it comes just weeks after CINEMARK HOLDINGS reported its third-quarter earnings.

This insider selling could be seen as a red flag by investors and analysts, as it may indicate that those within the company have concerns about its future prospects. It is worth noting that this is not the first time insiders at CINEMARK HOLDINGS have sold shares in recent months, with over $3 million worth of shares being sold by executives in August and September. While some may view this insider selling as a cause for concern, others may argue that it is simply a way for executives to diversify their holdings and manage their personal finances. As always, it is important for investors to carefully consider all available information and conduct their own research before making any decisions regarding their investments in CINEMARK HOLDINGS. Overall, the recent insider selling and subsequent dip in CINEMARK HOLDINGS’ stock price may raise some concerns among analysts and investors. The company’s performance in the coming months will be closely watched to see if it can bounce back from the effects of the pandemic and regain the confidence of both its own executives and the market. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Cinemark Holdings. More…

    Total Revenues Net Income Net Margin
    3.07k 184.9 7.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Cinemark Holdings. More…

    Operations Investing Financing
    444.3 -131.8 -125.4
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Cinemark Holdings. More…

    Total Assets Total Liabilities Book Value Per Share
    4.84k 4.52k 2.55
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Cinemark Holdings are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    64.7% -42.6% 12.9%
    FCF Margin ROE ROA
    9.6% 77.6% 5.1%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Cinemark Holdings Stock Fair Value Calculation

    After thoroughly analyzing CINEMARK HOLDINGS‘s fundamentals, I have come to the conclusion that the fair value of its share is around $31.0. This valuation has been calculated using our proprietary Valuation Line, which takes into consideration various key financial metrics such as earnings, book value, and cash flow. Currently, CINEMARK HOLDINGS’s stock is trading at $26.92, which indicates that it is undervalued by 13.2%. This presents a potential opportunity for investors to purchase the stock at a discounted price and potentially see gains in the future. One of the key factors contributing to the undervaluation of CINEMARK HOLDINGS is the current state of the movie theater industry. This has led to a decline in CINEMARK HOLDINGS’s stock price. However, I believe that once the pandemic subsides and people feel comfortable returning to movie theaters, there will be a rebound in the industry and in CINEMARK HOLDINGS’s stock price. Additionally, CINEMARK HOLDINGS has shown resilience in the past and has a strong track record of generating profits and expanding its business. In summary, I believe that CINEMARK HOLDINGS’s stock is currently trading at a bargain price and has potential for growth in the future. As such, investors should consider adding it to their portfolio for potential long-term gains. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Cinemark Holdings Inc. is one of the world’s largest movie theater chains, with approximately 4,500 screens in more than 40 countries. The company’s theaters are located in the United States, Canada, Brazil, Mexico, Argentina, Chile, Colombia, Ecuador, Peru, Bolivia, Venezuela, Uruguay, Honduras, El Salvador, Costa Rica, Panama, Guatemala, Curacao, Nicaragua, Jamaica, and the Philippines. Cinemark Holdings Inc. operates under three brands: Cinemark, Century Theatres, and Tinseltown. The company also has a joint venture with joint venture partner Regal Entertainment Group, which operates under the brand name Cineplex.

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    Summary

    Cinemark Holdings Inc, a leading movie theater chain, recently had its rating reviewed by analysts. The company’s PR, Valmir Fernandes, sold $0.68 million worth of shares. This news may indicate a lack of confidence in the company’s future performance. Investors should keep an eye on any further developments or changes in the company’s leadership and financial reports.

    Additionally, monitoring industry trends and competition could provide insight into Cinemark Holdings Inc’s future prospects. It is important for investors to conduct thorough analysis before making decisions to buy or sell stocks, especially in a volatile industry such as the entertainment sector.

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