Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - Benchmark lowered its price target on Cineverse (NASDAQ:CNVS) to $9.00 from $10.00 on Friday, while maintaining a Speculative Buy rating following disappointing performance of the company’s recent film release. The stock currently trades at $3.21, significantly below InvestingPro’s Fair Value estimate, with analysts maintaining a Strong Buy consensus.
The price target reduction comes after Cineverse’s Fall release of Toxic Avenger fell "well short of projections," according to Benchmark, causing both expectations and share price to decline significantly. This follows the company’s previous success with horror film Terrifier 3, which broke box office records in 2024. Despite recent volatility, InvestingPro data shows the company achieved impressive revenue growth of 77% in the last twelve months, with six additional ProTips available for subscribers.
Despite the setback, Benchmark noted that Cineverse is still expected to turn a profit on Toxic Avenger when factoring in merchandising, digital sales, and pay window licensing deals. The research firm acknowledged that Toxic Avenger was "the furthest from Cineverse’s core user base" among its horror film slate.
Cineverse has two upcoming horror releases that may perform better: Silent Night Deadly Night, scheduled for December 12, and Return to Silent Hill, due for release on January 23, 2026. The latter is expected to leverage "an ongoing resurgence in the franchise across video game console and wide screen events."
Benchmark reduced its EBITDA forecast for Cineverse by $5 million alongside the price target reduction, but stated it does not believe "the complete reversal in the stock price is warranted," noting that Terrifier 4 could be released in less than a year.
In other recent news, Cineverse Corp reported a 22% year-over-year increase in revenue for Q1 FY2026, reaching $11.1 million. However, the company also recorded a net loss of $3.5 million and an adjusted EBITDA of -$2.1 million, indicating ongoing financial challenges. Additionally, Cineverse launched Matchpoint 3.0, an updated version of its media supply chain platform, featuring enhanced AI automation capabilities. The company also renewed the employment contract of CFO Mark Lindsey, with updated terms extending through 2027.
Cineverse is expanding its AI-powered cinematic search engine, cineSearch, by integrating Fabric Data’s Origin platform, which will extend its reach across international markets. The company’s horror-comedy film, "The Toxic Avenger Unrated," has grossed over $2 million in its domestic box office debut. This film has received positive critical reception, boasting an 84% score on Rotten Tomatoes. These developments reflect Cineverse’s ongoing efforts to innovate and expand its market presence.
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