British movie theater chain agrees to buy Regal for $3.6 billion

UK's Cineworld targets US expansion with $3.6 billion deal to buy Regal Entertainment

Workers repair a sign at a Cineworld cinema in Bradford northern England. Image source Reuters

The company had seen its current volume reaching at 5.93 million shares in the last trade. 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 now has a Weekly Volatility of 8.70% and Monthly Volatility of 6.18%. The volume of RGC witnessed a shift from 5.93 million shares, based on a 50-day average, to 5 million shares.

Regal Entertainment Group has a beta of 0.98, offering the possibility of a higher rate of return, but also posing more risk.

Cineworld, Britain's biggest cinema operator, would pay $23 a share for Regal, which runs 561 theater locations, including five in the Baltimore region. They noted that the move was a valuation call. Revenue, on the other hand, scored -27.69% growth from the previous quarter, coming up with $626.15 million.

The U.S. experienced its lowest box office earnings in more than two decades, but annual takings have still managed to surpass $11 billion for the last two years. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.04 by $0.03. Shareholders of record on Monday, December 4th will be paid a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 4.29%. The ex-dividend date is Thursday, June 1st. This buyback authorization allows the company to purchase up to 2.2% of its stock through open market purchases.

CNX Resources Corporation is maintained at an average hold rating by 9 stock analysts, and there are at least 3.05% of shares outstanding that are now legally short sold. Nationally recognized Johnson Fistel is investigating whether the proposed deal price represents adequate consideration, especially given one Wall Street analyst has a $24.75 price target on the stock. Analysts giving the company a rating of 3 would be indicating a Hold recommendation. Finally, Credit Suisse Group dropped their price target on Regal Entertainment Group from $17.00 to $13.00 and set an "underperform" rating on the stock in a research report on Thursday, September 28th. The stock now has a consensus rating of "Hold" and an average target price of $21.48. If you are reading this story on another publication, it was illegally stolen and republished in violation of United States & worldwide trademark and copyright law. The move is a logical one for the company, with the USA having the largest box office takings globally - something that it will be able to take advantage of using Regal's 7,315 screens and 561 theatres across the US.

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