Wall Street Zen has downgraded shares of Cineverse (NASDAQ:CNVS) from a hold rating to a sell rating in a research note published on Saturday. This decision reflects growing concerns among analysts regarding the company’s financial performance and market outlook.
Other analysts have also recently expressed their views on Cineverse. On October 8, Weiss Ratings maintained a “sell (d+)” rating for the company. Additionally, Benchmark reduced its price target for Cineverse from $10.00 to $9.00, while assigning a “speculative buy” rating in a report released on Friday. UBS Group has similarly set a price objective of $9.00.
Currently, one equities research analyst has rated Cineverse with a buy rating, while another has assigned a sell rating. According to MarketBeat.com, the company’s average rating stands at “hold,” with a consensus price target of $9.00.
Recent Financial Performance
Cineverse reported its quarterly earnings on August 14, revealing a loss of $0.21 per share for the quarter, which was below the consensus estimate of $0.12 by $0.09. The company achieved a return on equity of 9.98% and a net margin of 3.89%. Revenue for the quarter totaled $12.74 million, exceeding analyst expectations of $10.18 million.
Institutional Changes in Holdings
Recent activity from institutional investors and hedge funds indicates a shift in positions regarding Cineverse. Founders Financial Securities LLC increased its stake in Cineverse by 38.5% in the third quarter, now holding 18,000 shares valued at approximately $60,000 after acquiring an additional 5,000 shares. Osaic Holdings Inc. raised its stake by 61.3% in the second quarter, now owning 22,902 shares valued at $109,000.
Additionally, Hillsdale Investment Management Inc. and Naviter Wealth LLC purchased new positions in Cineverse, valued at approximately $48,000 and $33,000, respectively. Jump Financial LLC also acquired a new position worth approximately $37,000.
Currently, institutional investors and hedge funds collectively hold 8.19% of Cineverse’s stock, reflecting a cautious but engaged interest in the company’s future.
About Cineverse
Cineverse Corp. operates as a streaming technology and entertainment company, managing two primary segments: Cinema Equipment, and Content and Entertainment. The company harnesses proprietary technology to operate streaming channels and delivers curated content through various platforms, including subscription video on demand (SVOD) and ad-supported streaming services. Cineverse is also involved in monitoring, billing, collection, and verification services, enhancing its presence in the competitive streaming market.
As Cineverse navigates a challenging landscape, analysts and investors alike will be closely monitoring the company’s response to recent financial performance and market ratings.
