Cineworld announce deal to buy Regal Entertainment, shares fall

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Shares in the group have risen more than 13 per cent since news of merger talks first emerged.

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.

The takeover would put the combined company in a better position to take on industry leader AMC Entertainment Holdings Inc, and give it more scale to fight growing competition from Netflix Inc, Apple Inc and other digital outlets.


The $6.3 billion transaction was approved unanimously by Regal's and Cineworld's boards of directors. After a recent spot-check, the stock has touched $22.68 which represents a change from the open of 0.80%. Analysts predict that Regal Entertainment Group will post $1.25 EPS for the current fiscal year. The company's quarterly EPS surprised Wall Street by as much as 40% to the upside in its last earnings announcement, so investors should note this tendency when assessing consensus estimates.

Cineworld said it expected the deal to "strongly" add to earnings in the first full year following completion, now expected in the first quarter of 2018. The stock has a market capitalization of $3.22 billion, a P/E ratio of 18.09 and a beta of 0.92. Epoch Investment Partners Inc. now owns 7,261,026 shares of the company's stock worth $148,561,000 after buying an additional 103,100 shares during the period. (NASDAQ:PAYX) traded up 1.11% in the last session while performance was up 67.61% in the last five days. The firm's 50-day moving average price is $21.44 and its 200 day moving average price is $21.92. The shares went up by 9.94% in value last month. According to Business Wire, Regal stockholders will receive $23 in cash for each share of Class A and Class B common stock. Over a month, it has seen its stock price volatility to stay at 4.38% while shortening the period to a week, volatility was 3.41%. MKM Partners reiterated a "buy" rating and issued a $20.00 target price on shares of Regal Entertainment Group in a research note on Monday, September 18th. BlackRock Advisors LLC now owns 46,386 shares of the company's stock valued at $1,009,000 after buying an additional 4,186 shares during the last quarter. BidaskClub cut shares of Regal Entertainment Group from a sell rating to a strong sell rating in a report on Thursday, August 10th.

CNX Resources Corporation (CNX) remained unsuccessful in beating the consensus-estimated $0.02 as it actually earned -$0.15 per share in its last reported financial results. For the full year, analysts expect earnings to jump 8.18% yoy to $2.38.

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