Cineworld clinches $3.6bn reverse takeover of Regal

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Wedbush reiterated a "buy" rating and set a $25.00 target price on shares of Regal Entertainment Group in a report on Monday, February 6th.

Regal Entertainment Group entered into an agreement with Cineworld Group, one of the U.K.'s largest cinema operators. Regal Entertainment Group presently has an average rating of "Hold" and a consensus target price of $21.48. Regal Entertainment Group has an average rating of "Hold" and an average price target of $26.21.

Regal now has profit margins of 20 percent, something which Greidinger hopes to raise to Cineworld's 22 percent.

CNX Resources Corporation (NYSE:CNX) recent rally took place on significantly more volume which surged almost 4.6 million contracts on 04-Dec-17 versus its daily average of 3.94 million. According to these analysts, the Low Revenue Estimate for Regal Entertainment Group is 867.3 Million and the High Revenue Estimate is 917.2 Million. The stock has a market capitalization of $3,250.00, a PE ratio of 23.30, a P/E/G ratio of 2.15 and a beta of 1.14. The company has a debt-to-equity ratio of -2.84, a quick ratio of 0.78 and a current ratio of 0.84.

Looking forward, the company's quarterly earnings are expected to come at $0.59 in the three months through November 2017 and $0.59 in the quarter ending February 2018, reflecting 5.36% and 7.27% growth, respectively. Regal Entertainment Group had a negative return on equity of 16.36% and a net margin of 4.41%. Revenue, on the other hand, scored -27.69% growth from the previous quarter, coming up with $626.15 million. The company reported the earnings of $0.07/Share in the last quarter where the estimated EPS by analysts was $0.05/share.

The Anschutz Corporation, the US-based media and entertainment group, which has 67 per cent of the voting power in Regal, has also agreed to the deal.

The transaction has been approved unanimously by Regal's and Cineworld's boards of cirectors. This buyback authorization allows the company to purchase up to 2.2% of its stock through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued. Finally, Royal Bank of Canada grew its stake in shares of Regal Entertainment Group by 17.2% in the second quarter.

Company shares have been seen trading -3.74% off of the 52 week high and 63.17% away from the 52 week low. Regal Entertainment Group's payout ratio is 81.48%. The company's stock had a trading volume of 10,210,000 shares, compared to its average volume of 7,421,647. Epoch Investment Partners Inc. raised its stake in Regal Entertainment Group by 1.4% during the 2nd quarter. Pacer Advisors Inc. now owns 6,945 shares of the company's stock valued at $151,000 after buying an additional 588 shares during the last quarter.

This recommendation lands on a scale between 1 and 5. Eagle Asset Management Inc. now owns 5,557,432 shares of the company's stock worth $89,919,000 after purchasing an additional 857,787 shares during the period. Hamlin Capital Management LLC boosted its holdings in shares of Regal Entertainment Group by 1.4% during the third quarter. If you are viewing this piece on another publication, it was stolen and republished in violation of worldwide copyright and trademark law.

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