Cinemark Boosts Dividend by 19 Percent
Movie theater group Cinemark Holdings said Thursday that its board has increased its dividend by 19 percent.
The company will now pay a quarterly dividend of 25 cents per share, amounting to $1 per share for the full year. The previous dividend payment stood at 21 cents a share.
The increased dividend will be paid on Sept. 12 to people who hold the stock as of Aug. 28.
Cinemark recently said that Mexico's competition commission has voted 3-2 to block the planned sale of its local circuit to Grupo Cinemex and Cadena Mexicana de Exhibicion. The company indicated that it would appeal the ruling as it evaluates alternatives.
"Given continued optimism that global long-term economics for the movie studios will be increasingly book-ended by theatrical exhibition and digital streaming, we are raising our price target to $37 from $34," Wunderlich Securities analyst Matthew Harrigan had said in a report earlier this week that reiterated his "buy" rating on the stock.
Morgan Stanley analyst Benjamin Swinburne on Thursday raised his price target on Cinemark by $1 to $33 and maintained his "equal weight" rating.
He said he continues to "prefer Cinemark over Regal on the higher growth outlook for the Latin American business."