Here’s Why Cineworld Share Price Fell 15% Today Erasing Recent Gains

Shares of UK cinema operator Cineworld Plc (LON: CINE) today dropped 15% reversing the bullish trend that has been in place since Monday. There was no clear fundamental catalyst behind the move, which means that the decline was mostly driven by profit-taking.

The stock had rallied 32% higher yesterday and 22% higher on Monday driven by the lifting of the Paramount Decrees in the US as investors expected a major Hollywood studio to make an offer for Cineworld’s American theatres.

However, there’s still no offer on the table, which explains the stocks decline today. The company still represents a great investment opportunity given that it is trading at all-time lows.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The full reopening of its theatres is likely to result in significant gains for the stock and investors who buy at these levels. An acquisition offer could also lead to a massive rally in the company’s share price.

Cineworld share price

Cineworld stock today fell 15% to a low of 45.0p from yesterday’s closing price of 52.94p.

• Trade Cineworld shares with the best stock brokers
• Learn how to trade stocks on this free demo account