NEW YORK (TheStreet) -- Shares of Regal Entertainment Group (RGC) closed lower by 1.86% to $22.18 in Wednesday's trading session, after the company had its rating cut to "hold" from "buy" by analysts at Topeka Capital Markets this morning.
Analysts at the firm maintained its $24 price target, but cited under-performance for its downgrade.
Topeka analysts said the stock "has essentially performed in line with the requirements for its 'buy' rating, up 20% since upgrading on May 15, but closed yesterday only 6.2% shy of the price target."
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The Knoxville, TN-based Regal Entertainment Group is the parent company of Regal Entertainment Holdings, Inc.
The company is engaged in the movie theater business, operating 6,614 screens in 527 theaters in 37 states and the District of Columbia.
Separately, TheStreet Ratings team rates REGAL ENTERTAINMENT GROUP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate REGAL ENTERTAINMENT GROUP (RGC) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."