Volatility Returns To Cinemark Holdings Inc. (CNK), Colony Capital Inc. (CLNY)

Cinemark Holdings Inc. (NYSE: CNK) shares are -60.18% down in the year-to-date (YTD) period and have moved 16.11% or $1.87 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +136.08% lower. Comparatively, the stock is -60.65% down YTD and -58.34% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.84% and 104.86% over the month.

Analyst Recommendations

On April 14, 2020, MKM Partners recommended the CNK stock is a Buy, while earlier, B. Riley FBR had Reiterated the stock as a Buy on April 16, 2020. 13 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the CNK stock is a “Moderate Sell. 0 of the 13 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $13.48 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $23.00. The forecasts give the Cinemark Holdings Inc. stock a price target range of $39.00 on the higher side while at least one analyst think the stock could plunge to a low of $16.00. The two limits represent an upside potential of 65.44% or 15.75%.

Earnings Forecast

Analysts estimate the earnings to decrease -48.80% in the current quarter to -$0.13, down from the $0.28 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.5, down -30.90% from $1.63 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1.78 and $0.77. Wall Street estimates earnings per share to be at an average of $1.74 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 24 over the last 12 months, while SEC filings reveal that there have been 10 insider sales over the same period. Insiders have purchases 714,809 shares while those sold by company executives and officers stand at 95,289. The last 3 months have seen insiders trade a total of 690,689 and 85,587 in purchases and sales respectively.

MITCHELL LEE ROY, a Director at the company, bought 122,800 shares worth $975032.0 at $7.94 per share on Mar 17. The Director had earlier bought another 5,000 CNK shares valued at $30900.0 on Mar 18. The shares were bought at $6.18 per share. Zoradi Mark (Chief Executive Officer) bought 20,000 shares at $10.58 per share on Mar 16 for a total of $211600.0 while MITCHELL LEE ROY, (Director) bought 106,001 shares on Mar 16 for $985809.0 with each share fetching $9.30.

Colony Capital Inc. (NYSE:CLNY), on the other hand, is trading around $2.07 with a market cap of $748.04M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $4.25 and spell out a more modest performance – a 51.29% return. Some analysts are even forecasting -$0.5 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Colony Capital Inc. (CLNY) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CLNY’s operating margin was negative on the trailing 12 months basis, remaining steady at -70.40%, while the operating expenses over the recent quarter were at $30.12 million. This represented a 93.56% of the company’s total revenues which amounted $467.52 million. With this in place, we can see that the company’s diluted EPS inclined $0.85 on the year-over-year period, shrinking to -$0.01 as given in the last earnings report.

The cash flow from operating activities totaled $170.87 million, significantly lower than the $506.96 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$1.75 billion.

Insider activity

Insiders have transacted a total of 16 times at Colony Capital Inc. over the last 6 months, with insider purchases undertaken 6 times and accounting for 4,461,642 shares. Insider sales totaled 1,387,968 shares over the same period, with these deals completed in 10 transactions. Looking at these numbers, we realize that net purchases over that period are -4.0 shares. Insiders now hold a total of 9.97M shares after the latest sales, with 81.00% net shares purchased.

Major holders

Insiders own 0.60% of the company shares, while shares held by institutions stand at 82.00%. Investors are also buoyed by the number of investors in a company, with Colony Capital Inc. having a total of 374 institutions that hold shares in the company.