Cinemark Stock Hits 3-Month Low on Downgrade

J.P. Morgan Securities sees potential headwinds from the Hollywood Strike

Deputy Editor
Jul 19, 2023 at 11:16 AM
facebook X logo linkedin

The shares of Cinemark Holdings Inc (NYSE:CNK) are trading at their lowest levels since early April, down 4% at $14.77 at last glance, after a downgrade from J.P. Morgan Securities to "neutral" from "overweight," with a price-target cut to $18 from $21.The firm cited the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) strike, noting that it could dent revenue. 

On the charts, CNK's 140-day moving average appears to be keeping today's pullback in check. It's also worth noting that short interest represents 22% of the stock's available float. Year-to-date, the equity is up 72.2%. 

Cinemark stock's typically quiet options pits are seeing some unusual volume after the bear note. So far, 1,563 calls have been exchanged, which is seven times the intraday average amount. Expiring at the end of this week, the August 15 call is the most active, with new positions being sold to open there. 

Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 97 out of 100, meaning the stock has exceeded option traders' volatility expectations during the past year.




How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.