Cinemark Stock Upgraded as Consumers Return to Theaters

The shares are jumping to their highest level since March

Deputy Editor
Jul 19, 2022 at 10:23 AM
facebook twitter linkedin


Cinemark Holdings Inc (NYSE:CNK) is up 7.4% at $17.87 at last glance, after Morgan Stanley upgraded the security to "overweight" from "equal-weight." The firm cited a large return to movie theatres, which it doesn't believe is reflected in shares. Earlier this month, Cinemark announced the June 2022 box office performance was the highest-grossing month since the start of the pandemic. 

Over the past two sessions of gains, CNK overcame pressure at the $16 level, as well as several long-term moving averages, including the 140-day trendline. Today's pop has the stock trading at its highest level since March, while eyeing its third-straight win. Year-to-date, the equity is up 11.4%. 

Of the 12 analysts in coverage, seven now carry a "buy" or better rating, while four say "hold" or worse. Plus, the 12-month consensus price target of $21.41 is an 18.9% premium to current levels.  It's also worth noting short interest makes up a whopping 20.1% of CNK's available float. At Cinemark stock's average pace of trading, it would take nearly two weeks to cover these bearish bets. 

Options look like an ideal way to speculate on CNK, as the stock sports relatively cheap premiums at the moment. This is per its Schaeffer's Volatility Index (SVI) of 59%, which stands higher than just 10% of readings from the past year. 

 

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners