Cinemark $CNK stock fell -5.7% on October 14, 2022, on what looks like large block sell trades coming off the dark pool. The stock recently received downgrades from analysts.
Dark Pool Selling In Cinemark $CNK Stock
An unusually large dark pool trades occurred in Cinemark Holdings $CNK stock on October 11, 2022. The dark pool trading data suggests that it was two sell orders each valued at $4.2 million because of how $CNK stock continued to fall after the print was made public.
Could the selling be from B. Riley or Credit Suisse?
A narrative emerges that box office traffic is plunging because consumer discretionary income is falling.
Cinemark price target lowered at B. Riley
On October 12, 2022, B. Riley analyst Eric Wold lowered the price target on Cinemark stock to $17 from $23 but kept a Buy rating on the shares. Eric Would noted continued uncertainties around film slate timing and production delays. He’s now projecting that 2022 and 2023 box office revenues will be 30% and 16% below 2019 levels, which would represent $7.9B and $9.5B in total box office, respectively. Wold sees attractive entry points for Buy-rated names looking into 2023.
Cinemark double downgraded at Credit Suisse
Also on October 12, 2022, Credit Suisse analyst Douglas Mitchelson double downgraded Cinemark (CNK) to Underperform from Outperform with a price target of $9, down from $25. Many industry participants have expressed optimism that the 2023 U.S. box office will continue its post-pandemic recovery, but Dougla Mitchelson thinks that is unlikely. He sees domestic box office revenue up about 4% in 2023. Mitchelson sees softness in Q1 2023 and Q4 2023, while summer 2023 should see offsetting gains. He is forecasting Q4 2022 domestic box revenue to be flat which is below the consensus.
Cinemark $CNK Stock Technical Analysis
Cinemark $CNK stock is in a technical strong downtrend. The market is approaching oversold territory. Be watchful of a trend reversal. Both the MACD and money flow are negative. Long-term indicators suggest a continuation of the downtrend. However, short-term indicators show that $CNK stock is approaching oversold territory and that a bounce or trend reversal is possible.