14 Worst 52-Week High Stocks to Buy According to Short Sellers

2. Cinemark Holdings, Inc. (NYSE:CNK)

52 Week Range: $13.19 – $29.07

Current Share Price: $28.62

Short % of Shares Outstanding: 17.66%

Number of Hedge Funds holding stakes as of Q2 2024: 32

Cinemark Holdings, Inc. (NYSE:CNK) is a communications services company engaged in the motion picture exhibition business with its subsidiaries. The company operates theaters with screens in 42 states in the US and 13 countries.

Short sellers have been pessimistic about the company’s long-term prospects owing to the underwhelming performance of the exhibition industry throughout 2024. The high interest rate environment has been unfavorable to the whole sector, significantly affecting consumer purchasing power. With a short interest of 17.66%, it remains one of the worst 52-week high stocks to buy, according to short sellers.

Nevertheless, Cinemark Holdings, Inc. (NYSE:CNK)’s shares have demonstrated resilience, with investors looking beyond current challenges towards a potential rebound in 2025. Supporting the optimism is the company’s solid second-quarter results

Revenue in the quarter came in at $734 million with a net profit of $47 million and an Adjusted EBITDA figure of $142 million. The company welcomed 50 million movie attendees worldwide and surpassed the recovery of the North American film sector by 400 basis points. Cinemark also kept its market position growing against the fiscal year 2019 figures in both the US and Latin America.

Amid the high short interest, the stock trades at a discount with a price and earnings multiple of 17. Insider Monkey’s second quarter of 2024 survey revealed that 32 hedge funds had bought a stake in the company. Out of these Cinemark Holdings, Inc. (NYSE:CNK)’s largest hedge fund investor is William B. Gray’s Orbis Investment Management since it owns 13.37 million shares that are worth $289.08 million.

Here is what Carillon Chartwell Small Cap Value Fund said about Cinemark Holdings, Inc. (NYSE:CNK) in its Q2 2024 investor letter:

“Cinemark Holdings, Inc. (NYSE:CNK) operates movie theaters across North and South America. Recent results exceeded expectations as film box office numbers were strong, driving revenue and profits. Investors also began to anticipate a stronger slate of movie releases in coming years.”