Why Cinedigm Shares Closed 10.6% Higher on Wednesday

Shares of Cinedigm (NASDAQ: CIDM) closed Wednesday 10.6% higher, and the trading volume was more than double the average over the last three months. The company had no particular news of its own today, but Cinedigm is scheduled to report first-quarter 2022 results on Thursday evening. That's usually not a market-moving idea, but Cinedigm's position is a bit unusual.

Cinedigm used to be a digital content distributor with a tight focus on the cinema industry. That changed when movie theaters started fighting for their proverbial lives in recent years, and Cinedigm's revenue chart made a sharp turn southward. Sales have been in free fall since 2016, and the company started to burn cash during the coronavirus lockdowns of 2020.