B. Riley cut its rating to "neutral" from "buy"
Cinemark Holdings, Inc. (NYSE:CNK) was last seen down 1.1% at $13.94, after a downgrade from B. Riley to "neutral" from "buy," and price-target cut to $15 from $23. CNK shed 15.5% in the past six months, and is today eyeing its fifth loss in the last six sessions, as it moves further below its 20-day moving average. The equity maintains a 61.8% year-over-year lead, however.
There is still room for additional downgrades and/or price-target cuts. Coming into today, six of 10 analysts covering CNK rated it a "buy" or better, while the 12-month consensus target price of $18.45 is a 32.4% premium to current levels.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Cinemark stock's 10-day call/put volume ratio of 21.70 ranks higher than 92% of readings from the past year. In other words, the options pits lean extremely bullish, and an unwinding of this optimism could result in additional headwinds.
Premiums are affordably priced, per the equity's Schaeffer's Volatility Index (SVI) of 46% that sits higher than just 11% of annual readings, meaning short-term options are pricing in lower-than-usual volatility expectations.