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. 




Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!