Cineplex (TSE:CGX) Stock Breaks Above Two Hundred Day Moving Average – Here’s Why

Cineplex Inc. (TSE:CGX) shares crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of C$11.51 and traded as high as C$13.11. Cineplex shares last traded at C$12.74, with a volume of 696,241 shares changing hands.

Cineplex News Summary

Here are the key news stories impacting Cineplex this week:

• Positive Sentiment: Potential sale creates takeover optionality: Cineplex has launched a Board-led review of strategic alternatives, which may include a sale of the company. Although no transaction is assured, the process could attract bidders or prompt other actions intended to enhance shareholder value. Cineplex names Bill Walker as CEO, initiates review that could include sale
• Positive Sentiment: New CEO brings industry experience: Bill Walker has been appointed chief executive, effective immediately. His background as a veteran cinema executive and former head of Landmark Cinemas may reassure investors that Cineplex is bringing in experienced leadership during an important strategic period. Cineplex appoints Bill Walker as chief executive officer and announces strategic review
• Positive Sentiment: Technical momentum is supportive: Cineplex shares recently moved above their 200-day moving average, a development that can attract technical buyers and reinforce improving market momentum. Cineplex shares pass above two hundred day moving average
• Neutral Sentiment: Board transition continues: Former CEO Ellis Jacob will serve as a special advisor to the Board. His continued involvement may provide continuity, while the new CEO takes responsibility for operations and the strategic review. Cineplex announces appointment of Ellis Jacob as special advisor
• Negative Sentiment: Review outcome remains uncertain: Cineplex has not announced a buyer or specific transaction, and a strategic review may ultimately result in no sale. Investors may therefore see increased volatility while management evaluates alternatives. Cineplex explores strategic alternatives

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Royal Bank Of Canada lifted their target price on Cineplex from C$14.00 to C$15.00 and gave the company an “outperform” rating in a research note on Tuesday, September 15th. Scotiabank increased their price target on Cineplex from C$12.00 to C$13.50 and gave the stock a “sector outperform” rating in a report on Wednesday, August 12th. National Bank Financial lifted their price objective on shares of Cineplex from C$13.50 to C$14.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. Finally, TD Securities raised shares of Cineplex to a “strong-buy” rating in a research note on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of C$14.00.

Cineplex Trading Up 5.3%

The company has a market cap of C$812.74 million, a price-to-earnings ratio of -64.50, a P/E/G ratio of 0.30 and a beta of 0.20. The business has a fifty day simple moving average of C$12.33 and a 200 day simple moving average of C$11.52. The company has a quick ratio of 0.22, a current ratio of 0.44 and a debt-to-equity ratio of -1,865.57.

Cineplex (TSE:CGX) last released its quarterly earnings data on Tuesday, August 11th. The company reported C$0.12 EPS for the quarter. Cineplex had a negative net margin of 0.96% and a positive return on equity of 14.84%. The firm had revenue of C$383.72 million for the quarter. On average, equities analysts anticipate that Cineplex Inc. will post 1.0754912 EPS for the current fiscal year.

Cineplex Company Profile

Cineplex is a diversified media company that operates chains of movie theaters. The company has four reporting segments: film entertainment and content; media; amusement and leisure; and location-based entertainment. The film entertainment and content segment includes revenue from theater attendance. The media segment includes cinema media and digital place-based media operations. The amusement and leisure reporting segment manages the operation and distribution of gaming and vending equipment. Formerly housed in the amusement and leisure segment, the location-based entertainment business derives revenue from entertainment restaurant chains like The Rec Room and Playdium.