Analysts Set Cinemark Target Price at $35.30, Maintain Buy Rating

Cinemark Holdings Inc (NYSE:CNK) has garnered a consensus recommendation of “Moderate Buy” from twelve brokerages currently covering the stock, according to Marketbeat. Among these analysts, three have rated the stock as a hold, while nine have issued buy ratings. The average target price for the upcoming twelve months is set at $35.30, reflecting varying outlooks on the company’s performance.

Several brokerages have recently updated their assessments of Cinemark. On August 4, 2024, Roth Capital revised its target price from $36.00 to $34.00 while maintaining a buy rating. Similarly, Morgan Stanley adjusted its target price from $35.00 to $34.00, assigning an overweight rating on October 21, 2024. In contrast, Barrington Research reaffirmed an outperform rating, setting a target price of $36.00 on September 23, 2024. Wells Fargo & Company also reiterated an overweight rating but lowered its target price to $33.00, down from $36.00. Additionally, Zacks Research upgraded Cinemark from a “strong sell” to a “hold” rating on October 3, 2024.

Institutional Investments and Stock Performance

Recent activity among institutional investors indicates a growing confidence in Cinemark. The New York State Teachers Retirement System increased its stake by 2.5% in the first quarter, acquiring an additional 2,450 shares to bring its total to 101,388 shares valued at approximately $2.52 million. The Teacher Retirement System of Texas also entered into a new stake worth around $401,000 during the same period.

Principal Financial Group Inc. raised its holdings by 2.8%, now holding 681,435 shares valued at approximately $16.96 million. Other investors, including Alps Advisors Inc. and Cerity Partners LLC, made new investments in Cinemark, further contributing to a positive outlook for the company.

Cinemark’s stock performance has been noteworthy, opening at $27.14 on a recent trading day. The company boasts a market capitalization of $3.12 billion, a price-to-earnings ratio of 14.83, and a price-to-earnings-growth ratio of 1.89. Despite challenges, the stock has shown resilience, with a one-year low of $23.12 and a high of $36.28.

Recent Earnings and Dividend Announcements

Cinemark announced its earnings results on August 1, 2024, reporting an earnings per share (EPS) of $0.63. This figure fell short of analysts’ expectations of $0.78, with revenue for the quarter reaching $940.50 million, slightly below the anticipated $942.14 million. Notably, the company has seen a 28.1% increase in revenue compared to the same period last year, where it reported an EPS of $0.32.

In addition to its financial performance, Cinemark declared a quarterly dividend of $0.08 per share, paid to investors on September 10, 2024. The dividend represents an annualized payout of $0.32, yielding approximately 1.2%. The ex-dividend date was set for August 27, 2024, and the company’s dividend payout ratio currently stands at 17.49%.

Cinemark Holdings, Inc., founded in 1984 and headquartered in Plano, Texas, operates in the motion picture exhibition industry. As of February 16, 2024, the company runs 501 theatres with 5,719 screens across 42 states and 13 countries in South and Central America.