Cinemark Stock Brushes Off Downgrade

B. Riley downgraded CNK to "neutral" from "buy"

Deputy Editor
May 18, 2020 at 10:12 AM
facebook twitter linkedin


The shares of Cinemark Holdings, Inc (NYSE:CNK) are up 5.2% at $12.65 at last check, shaking off a downgrade from B. Riley to "neutral" from "buy," with an added price-target cut to $13 from $16. The analyst in coverage is skeptical about a rebound for the second half of 2020, and is also concerned by CNK's exposure to Brazil, where the COVID-19 pandemic is worsening. 

CNK has traded sideways since gapping to a record low of $5.71 on March 23. The equity is down 65% in 2020, although a floor could be forming at the $12 level. 

Today's downgrade flies in the face of the overall brokerage sentiment. Exactly 70% analysts sport a "strong buy" while the remaining three are at a tepid "hold." Meanwhile, the 12-month consensus price target of $21.64 is a 82.2% premium to last night's close. 

A short squeeze could help the security break out. CNK short interest dropped 10% in the last reporting period, but still accounts for 11.66 million shares, or close to 11% of the stock's available float. At the stock's average daily trading volume, it would take almost three days to repurchase all of these pessimistic options. 

 

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners