Cinedigm Inc (NASDAQ:CIDM) Stock Attempts To Rebound After The Recent Sell-Off

Yesterday, the Cinedigm Inc (NASDAQ:CIDM) stock managed to make a strong recovery and jumped by 10% after having been down in the dumps for some days.

Market Stats

On Wednesday, CIDM stock soared 10.26% at $1.72 with more than 11.26 million shares, compared to its average volume of 9.10 million shares. The stock has moved within a range of $1.5600 – 1.7650 after opening trading at $1.56.

Earnings Review

In this regard, it should be noted that despite the recovery, the stock is still down by 19% over the past week. There was no news about the company on Wednesday that could have led to such a recovery but earlier on in the week on November 15, the company was in the news after it announced its financial results for the quarter that had ended on September 30, 2021.

The streaming entertainment company recorded revenues of as much as $10.1 million for the quarter which worked out to a year on year rise of as much as 41%. The rise in revenues was driven by a range of factors starting from establishment of new streaming channels as well as through distribution by way of new Smart TV platforms and deployment of new advertising technology. In this regard, it should be noted that revenues from streaming channels went up by as much as 139% year on year. On the other hand, revenues from the ad supported streaming channel soared by 208% year on year.

Key Quote

“We continued our strong momentum with another triple-digit streaming revenue growth performance in the second quarter. Led by our ad-supported streaming business, which increased by 208% in the quarter, total streaming revenues grew by 139% and are up 157% year to date. We registered this dramatic growth despite this quarter being the seasonally slowest period of the year,” said Chris McGurk, Cinedigm Chairman and CEO. “We look forward to continuing this momentum as we further broaden our robust enthusiast streaming channel portfolio and expand platform distribution into the next two fiscal quarters, which are the historically strongest seasonal periods of our business.”

Traders Corner

CIDM stock is below the 20-Day and 50-Day Moving averages of $2.21 and $2.36  respectively. However, the stock is trading above the 200-Day moving average of $1.71. The stock is down 28% in the past month.

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