Cineworld announce deal to buy Regal Entertainment, shares fall

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Regal

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Recently, analysts have updated the overall rating to 2.

Cineworld, Britain's biggest cinema operator, would pay $23 a share for Regal, which runs 561 theater locations. Zacks Investment Research upgraded Regal Entertainment Group from a "sell" rating to a "hold" rating in a research report on Wednesday, November 8th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, six have given a buy rating and one has given a strong buy rating to the company's stock. Hamlin Capital Management LLC boosted its holdings in shares of Regal Entertainment Group by 1.4% during the third quarter. Following the sale, the executive vice president now owns 212,715 shares of the company's stock, valued at approximately $4,786,087.50. Pacer Advisors Inc. increased its stake in shares of Regal Entertainment Group by 9.2% in the third quarter. The industry leader acquired USA chain Carmike Cinema and Odeon & UCI Cinemas in 2016, later purchasing Nordic Cinema Group in 2017.

The approach by Cineworld was considered well-timed as shares in the US company have plunged more than 20 percent over the previous year on concerns over stagnant admissions at theatres. During the same quarter in the previous year, the company earned $0.27 EPS. Shares in the group have risen more than 13 per cent since news of merger talks first emerged.

Cineworld has said that it will fund the acquisition through a mixture of debt and a £1.7bn ($2.3bn) equity fundraising.

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Currently, the stock carries a price to earnings ratio of 24.7, a price to book ratio of 0, and a price to sales ratio of 0.99.

Regal Entertainment Group (NYSE:RGC) last posted its earnings results on Tuesday, October 24th. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.03. The Return on Equity (ROE) value stands at -16.4%. The firm had revenue of $716.00 million for the quarter, compared to analysts' expectations of $701.66 million. With an institutional ownership near 0%, it carries an earnings per share ratio of 0.83. Investors of record on Monday, June 5th will be paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Friday, December 1st. This represents a $0.88 annualized dividend and a dividend yield of 4.29%. Regal Entertainment Group's payout ratio is 101.15%.

Regal Entertainment Group announced that its board has approved a stock repurchase plan on Thursday, August 31st that authorizes the company to repurchase $50.00 million in outstanding shares.

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