Cinemark Holdings Inc. [NYSE: CNK] stock went on an upward path that rose over 1.00% on Wednesday, amounting to a one-week price decrease of less than -2.79%. The company report on August 19, 2020 that Cinemark Holdings, Inc. Announces Pricing of $400 Million Convertible Senior Notes Offering.
Cinemark Holdings, Inc. (the “Company”) (NYSE:CNK) announced today that it priced $400 million aggregate principal amount of its 4.50% Convertible Senior Notes due 2025 (the “Notes”) in a private offering (the “Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company has also granted the initial purchasers of the Notes a 13-day option to purchase up to an additional $60 million aggregate principal amount of the Notes. The Offering is expected to close on August 21, 2020, subject to customary closing conditions.
The Notes will be senior unsecured obligations of the Company and will bear interest at a rate of 4.50% per annum, payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2021. The Notes will mature on August 15, 2025, unless earlier repurchased or converted, and the Company will not have the right to redeem the Notes prior to maturity. The initial conversion rate will be 69.6767 shares of the Company’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $14.35 per share of common stock) and is subject to certain adjustments under the terms of the Notes. The initial conversion price of the Notes represents a premium of 30% over the last reported sale price of the Company’s common stock on The New York Stock Exchange on August 18, 2020. The Notes will be convertible at the option of the holders and may be settled, at the Company’s election, in cash, shares of the Company’s common stock or a combination thereof. Prior to the close of business on the business day immediately preceding May 15, 2025, the Notes will be convertible at the option of the holders of the Notes only upon the satisfaction of specified conditions and during certain periods. On or after May 15, 2025, holders may convert their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. If the Company undergoes certain fundamental changes, holders of the Notes may require the Company to repurchase for cash all or part of their Notes at a purchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. In addition, if a make-whole fundamental change occurs prior to the maturity date, the Company will, under certain circumstances, increase the conversion rate for holders who convert Notes in connection with such make-whole fundamental change.
Over the last 12 months, CNK stock dropped by -70.44%. The one-year Cinemark Holdings Inc. stock forecast points to a potential upside of 31.09. The average equity rating for CNK stock is currently 2.40, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.22 billion, with 116.67 million shares outstanding and 98.40 million shares in the current float. Compared to the average trading volume of 5.21M shares, CNK stock reached a trading volume of 17867200 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Cinemark Holdings Inc. [CNK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CNK shares is $16.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CNK stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Goldman have made an estimate for Cinemark Holdings Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on July 15, 2020. While these analysts kept the previous recommendation, Credit Suisse dropped their target price from $20 to $13. The new note on the price target was released on June 29, 2020, representing the official price target for Cinemark Holdings Inc. stock. Previously, the target price had yet another drop from $16 to $13, while B. Riley FBR kept a Neutral rating on CNK stock.
The Average True Range (ATR) for Cinemark Holdings Inc. is set at 0.97, with the Price to Sales ratio for CNK stock in the period of the last 12 months amounting to 0.57. The Price to Book ratio for the last quarter was 1.20, with the Price to Cash per share for the same quarter was set at 5.21.
CNK Stock Performance Analysis:
Cinemark Holdings Inc. [CNK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.79. With this latest performance, CNK shares dropped by -13.03% in over the last four-week period, additionally sinking by -65.87% over the last 6 months – not to mention a drop of -70.44% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CNK stock in for the last two-week period is set at 42.54, with the RSI for the last a single of trading hit 42.25, and the three-weeks RSI is set at 43.95 for Cinemark Holdings Inc. [CNK]. The present Moving Average for the last 50 days of trading for this stock 12.79, while it was recorded at 11.89 for the last single week of trading, and 21.28 for the last 200 days.
Insight into Cinemark Holdings Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Cinemark Holdings Inc. [CNK] shares currently have an operating margin of +12.41 and a Gross Margin at +17.69. Cinemark Holdings Inc.’s Net Margin is presently recorded at +5.79.
Return on Total Capital for CNK is now 9.79, given the latest momentum, and Return on Invested Capital for the company is 4.74. Return on Equity for this stock inclined to 13.21, with Return on Assets sitting at 3.69. When it comes to the capital structure of this company, Cinemark Holdings Inc. [CNK] has a Total Debt to Total Equity ratio set at 235.08. Additionally, CNK Total Debt to Total Capital is recorded at 70.16, with Total Debt to Total Assets ending up at 57.91. Long-Term Debt to Equity for the company is recorded at 218.40, with the Long-Term Debt to Total Capital now at 65.18.
Reflecting on the efficiency of the workforce at the company, Cinemark Holdings Inc. [CNK] managed to generate an average of $8,646 per employee. Receivables Turnover for the company is 35.27 with a Total Asset Turnover recorded at a value of 0.64.Cinemark Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
CNK Stock EPS
With the latest financial reports released by the company, Cinemark Holdings Inc. posted 0.27/share EPS, while the average EPS was predicted by analysts to be reported at 0.49/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -44.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CNK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cinemark Holdings Inc. go to -5.71%.
Cinemark Holdings Inc. [CNK] Insider Position Details
There are presently around $1,112 million, or 93.40% of CNK stock, in the hands of institutional investors. The top three institutional holders of CNK stocks are: BLACKROCK INC. with ownership of 12,397,289, which is approximately 0.386% of the company’s market cap and around 6.10% of the total institutional ownership; VANGUARD GROUP INC, holding 9,671,457 shares of the stock with an approximate value of $107.84 million in CNK stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $94.16 million in CNK stock with ownership of nearly 68.314% of the company’s market capitalization.
Positions in Cinemark Holdings Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 133 institutional holders increased their position in Cinemark Holdings Inc. [NYSE:CNK] by around 21,754,760 shares. Additionally, 157 investors decreased positions by around 40,360,848 shares, while 30 investors held positions by with 37,613,284 shares. The mentioned changes placed institutional holdings at 99,728,892 shares, according to the latest SEC report filing. CNK stock had 49 new institutional investments in for a total of 4,790,640 shares, while 67 institutional investors sold positions of 12,621,846 shares during the same period.