Regal Entertainment to be acquired by Cineworld Group

Regal Entertainment to be acquired by Cineworld Group

RGC's mean recommendation on Reuter's scale slipped from 2.33 thirty days ago to 2.15 now, which indicates a hold consensus from the analyst community. It last reported revenues of $816.8 million and EPS of $0.62 for the August 2017, representing 4% top-line growth and 0.6 EPS growth. They noted that the move was a valuation call. Finally, KCG Holdings Inc. increased its stake in shares of Regal Entertainment Group by 69.5% in the third quarter. 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. The difference between the expected and actual EPS was $0.02/share, which represents an Earnings surprise of 40%. Regal Entertainment Group's payout ratio is 81.48%. Analysts giving shares a rating of 1 or 2 would be indicating a Buy.

The Relative Volume of the company is 2.07 and Average Volume (3 months) is 4.92 million.

Knoxville, Tenn. -based Regal, which is controlled by billionaire Philip Anschutz, said last week that the company was in talks to be acquired by Cineworld.

The $6.3 billion transaction was approved unanimously by Regal's and Cineworld's boards of directors. Analysts reported that the Price Target for Regal Entertainment Group might touch $24.75 high while the Average Price Target and Low price Target is $21.44 and $17 respectively. Regal Entertainment Group has an average rating of "Hold" and an average price target of $26.21. The stock's last price was higher from the average trading price of 50 days recorded at $63.95 while enlarging the period to 200 trading days, the average price was $59.89. Shares buyback plans are generally an indication that the company's board believes its stock is undervalued.

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The move will see Cineworld, the largest cinema operator in the United Kingdom, expanding into the USA market for the first time. Institutional investors and hedge funds own 65.33% of the company's stock.

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Cineworld has offered $23 a share for Regal, the second-largest cinema chain in the US, as announced last week when it confirmed that the two companies were in talks. The Company manages its business under theatre exhibition operations segment.