Cinemark Holdings Stock Takes a Dip After Rating Cut to Neutral by B. Riley
January 4, 2024
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Cinemark Holdings ($NYSE:CNK), Inc. is a leading motion picture exhibitor owning, operating, and investing in theatres throughout the United States and Latin America. The company has seen significant success over the past few years and the stock has seen a steady rise.
However, recently B. Riley downgraded Cinemark’s stock from Buy to Neutral, causing the price to dip. This downgrade by B. Riley has caused Cinemark’s stock to take a hit, with its price falling over the course of the day. Analysts at B. Riley cited a lack of near-term catalysts for the stock’s growth as the reason for the downgrade. They also noted that Cinemark’s focus on cost savings and efficiency could lead to slower growth in the future. Despite this downgrade, Cinemark’s stock is still up substantially from where it was a year ago. The company has benefited from strong results in its international markets, as well as its focus on cost savings and efficiency.
Additionally, Cinemark has been expanding its theatre footprint in many of its markets over the past few years, which could lead to further growth in the future. Overall, the impact of B. Riley’s downgrade of Cinemark’s stock to Neutral has been a short-term dip in price for the company’s stock. However, the company’s long-term prospects remain strong given its focus on cost savings and efficiency, its international growth, and its expansion of theatre footprints in many of its markets.
Market Price
On Tuesday, CINEMARK HOLDINGS stock took a slight dip after B. Riley cut its rating on the stock from Buy to Neutral. The stock opened at $13.7 and closed at $14.0, a decrease of 0.9% from the previous closing price of $14.1. It is unclear why B. Riley cut its rating despite these positive earnings results. Analysts will be watching the stock closely in the coming weeks to see if there is any further movement as a result of the rating change. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cinemark Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 3.03k | 104.7 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cinemark Holdings. More…
| Operations | Investing | Financing |
| 444.1 | -117.9 | -137.6 |
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 |
| 4.81k | 4.48k | 2.67 |
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 |
| 30.0% | -42.6% | 10.3% |
| FCF Margin | ROE | ROA |
| 10.2% | 68.5% | 4.1% |
Analysis
As part of our analysis of CINEMARK HOLDINGS‘s wellbeing, we classified the company as a ‘gorilla’ using the Star Chart. This type of company has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its strong assets, profitability, and medium growth and weak dividend rate, CINEMARK HOLDINGS is likely to be attractive to value investors looking for a company with a reasonable debt level and sufficient cash flows to cover current obligations and fund future operations. The company’s intermediate health score of 6/10 reflects these qualities. Though CINEMARK HOLDINGS has strong fundamentals, the company’s stock price is still subject to change based on market conditions, so investors should always research and consider different factors before investing. More…
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. (CNK) has been the subject of a recent downgrade by B. Riley from Buy to Neutral, leading to a dip in stock prices. Overall, investors should carefully evaluate these risks before investing in Cinemark Holdings.
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