A grade of C+ or higher points to institutions, on net, accumulating shares. The Relative Strength Rating runs from 1 to 99; for investors selecting top growth stocks, the higher the RS Rating, the better the stock in general. When choosing growth stocks for the biggest potential gains based on the key elements of IBD’s growth stock investing paradigm, focus on those with a Composite Rating of 90 or higher. Shooting for a 95 or higher, particularly at the start of a new bull market, is even better. In January 2021, WallStreetBets chat-room traders on Reddit joined in unison in buying shares and bullish call options in AMC stock.
AMC Share Price Plunges As Company Announces Stock Sale Plan
It’s all being fought to pay off some of AMC’s considerable debt mountain, which Bloomberg puts the figure at $9.5 billion. The cinema has previously used the now-defunct APE shares to pay off $548 million in debt. Over a two-day period on Sept. 6-7, the stock fell a combined 43% after the company announced a plan via a filing to the Securities & Exchange Commission to sell up to 40 million in additional common shares. On Sept. 1, the company reported that pop music icon Taylor Swift’s concert film shattered records for single-day ticket sales revenue at $26 million.
Earnings and Valuation
AMC Entertainment saw a increase in short interest in April. As of April 15th, there was short interest totaling 50,690,000 shares, an increase of 20.1% from the March 31st total of 42,190,000 shares. Based on an average daily trading volume, of 15,330,000 shares, the days-to-cover ratio is currently 3.3 days. AMC CEO Adam Aron described the court’s approval as a “significant milestone” in a letter to investors earlier this month. “Knowing that we can do our best for AMC to smartly raise capital is a terrific relief,” Aron said. The CEO has repeatedly warned that AMC faces liquidity challenges.
AMC Entertainment Completes 10:1 Reverse Stock Split to Sell New Shares
Wall Street analysts’ consensus calls for revenue of $861.1 million and a loss per share of 79 cents. The company plans to report its final quarterly numbers on May 8. Occasionally, public companies release preliminary numbers, especially those under scrutiny as AMC is during its recovery from the dual strikes of 2023. Like its peers in exhibition, the company has been hurt by a slowdown in the overall production pipeline, with total box office slumping this year on top of the painful crawl out of the long shutdowns of the pandemic. When a stock shows a high level of short interest and is getting bid up, you can almost count on a chain reaction of buying to occur.
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Jain also worked at Redbox Automated Retail as chief financial officer from September 2016 to June 2020. This story examines fundamental, technical and fund ownership factors to determine if the Leawood, Kan., company with 900 theaters and 10,000 screens scores a good probability of making money for stock traders. On Jan. 31, after the Federal Reserve’s first meeting of 2024 on interest rates concluded, the stock finished 1.5% lower to a record low of 4.05 and dropped nearly 34% for the month. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.
The company now commands more than 30% of the global market share with only 5% of the total screens and it has been a ground-breaking business in many respects. We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. “We think AMC is well-positioned against an improving industry backdrop,” said Reese, in the note, adding that Wedbush expects North American box office to end up 20% higher than 2022. This website is using a security service to protect itself from online attacks.
This will ultimately result in 158 million AMC shares outstanding. “Once AMC completes these actions, it will have the authorization to issue up to 550 million additional shares without further shareholder approval,” said Reese. https://broker-review.org/ “AMC may use the opportunity to repay some or all of its debt balance while AMC shares are still trading at a premium.” Ironically, the stock price plunge might boost short interest and start the memestock cycle all over again.
Short sellers, betting on a decline in the stock, at some point may have to do a sudden about-face. Let’s first revisit the hyper-fast run during the meme stock boom of 2021. Prior to the giant gain on June 2, 2021, over just five sessions of trade (May 24 to 28), AMC obliterated the short sellers by rising as much as 203%. In the week ended June 4, AMC stock almost finished up 100% or more for a second straight week.
AMC’s ratings in IBD Stock Checkup are still showing extremely bearish tints. Keep in mind that blockbuster movies or TV shows don’t necessarily lead to an equally sizable windfall for the theater operators. On March 1, AMC also elected Sonia Jain to the board of directors. She held the same post at both Convoy Inc. from April 2022 to September 2022.
- Ironically, the stock price plunge might boost short interest and start the memestock cycle all over again.
- A powerful rebound could force short sellers to cover their positions, helping to propel shares even higher.
- 5 Wall Street research analysts have issued 12-month price targets for AMC Entertainment’s stock.
- The consensus among Wall Street analysts is that investors should “strong sell” AMC shares.
- AMC Entertainment’s stock is owned by a number of retail and institutional investors.
According to MarketSurge, short interest — shares sold short by individual and professional investors — edged lower to 41.4 million shares, 16% of the stock’s newly revised float of 260.6 million shares. On Jan. 7 this year, AMC announced that the Eras Tour movie officially became the highest grossing film in box office history in the concert and documentary film category, achieving $262 million in ticket sales to date. That broke the $261.2 million record of the 2009 concert film “Michael Jackson’s This Is It.”
Top movie theater circuit AMC Entertainment offered investors a preview of its first-quarter financial results late Friday, with key metrics coming in ahead of Wall Street expectations. In August last year, AMC held a very respectable 96 Relative Strength Rating. This score means AMC stock had outperformed 96% of all stocks https://forexbroker-listing.com/activtrades/ in the IBD database over the past 12 months. And the 3-month RS Rating at the time zoomed to a highest possible 99, according to MarketSurge data. On Aug. 11, a Delaware Court judge removed the last hurdles to AMC continuing to sell stock to reduce its high debt load by synchronizing the value of APEs and common shares.
However, Wedbush Securities issued bullish comments on an AMC rival, Cinemark (CNK), noting that analyst Alicia Reese wrote she does not expect the cinema chain’s robust market share to change materially in 2024. AMC Entertainment Holdings, Inc owns, operates, or has an interest in cinema theatres in the United States and Europe but has also expanded into digital and streaming media. In 2000, the company partnered to offer the first online ticket sales and expands it to all theaters, even Empire 25 in New York, the world’s busiest movie theater. In regard to market dominance, AMC Entertainment operates 22 of the US 50 busiest movie theaters and 4 of the top 5. Later, the company announced the launch of streaming services in 2019 and listed thousands of titles across a wide spectrum of genres and categories by mid-2022.
The dumbest thing we could ever do as a company is run out of cash and other companies in the industry have run out of cash. And some of the armchair quarterbacks on Twitter, who give me advice every day, if I follow their suggestions, we would have run out of cash a long time ago. If I follow their suggestions now, we’ll run out of cash,” Aron argued.
That hasn’t helped the share price recover, nor does it look set to do so anytime soon if AMC plans more share sales. Shares of AMC Entertainment reverse split before market open on Thursday, August 24th 2023. The 1-10 reverse split was announced on Monday, August 14th 2023. The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, August 23rd 2023.
AMC shares closed at a record low on Wednesday, plunging 37% to hit a price of $8.62. That’s on top of a 35% share price slide that happened after AMC converted its stock in August, taking AMC’s share price down 83.7% since the start of the year. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news and information when posted to our website can also visit to sign up for email alerts.
In August, it was announced that the struggling cinema chain had successfully converted its preferred equity units, called APE shares (after the 2021 AMC memestock craze, believe it or not), into AMC common stock. The plan was initially shared back in March, quickly drawing the ire of AMC shareholders and sparking litigation. The beleaguered cinema chain AMC Entertainment has announced plans to sell more of its common shares. The ‘at the market’ offering program will sell up to 40 million shares of class A common stock, with Citigroup Global Markets, Barclays Capital, B. Riley Securities, and Goldman Sachs facilitating the sale. 5 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for AMC Entertainment in the last twelve months.
To get this ideal entry in a cup without handle, simply take the cup’s left-side high. Still, with gains of as much as 501% in just two weeks, it made sense to lock in at least partial profits. They include a 62 Earnings Per Share Rating on a scale of 1 to 99, up sharply from 23 in recent months but down from 70 prior to Q4 results.
AMC’s plan to convert its APEs to common stock was blocked last month when Delaware Chancery Court Judge Morgan Zurn rejected a settlement that would have allowed the deal to proceed. The stock-conversion luno exchange review plan is part of the movie-theater chain and meme-stock darling’s ongoing battle to eliminate debt. Set against this backdrop, Wedbush raised its AMC (AMC) price target to $19 from $2 Thursday.
On average, they anticipate the company’s stock price to reach $5.95 in the next twelve months. This suggests a possible upside of 74.5% from the stock’s current price. View analysts price targets for AMC or view top-rated stocks among Wall Street analysts. The reverse split, executed Thursday, reduced the number of AMC shares by giving investors one share for every 10 they previously held, while boosting their price as the stock falls in value. Shares in the parent of AMC Theatres opened trading Thursday at $19.60 after hovering in the $2 per-share range in recent days, ahead of the reverse stock split being implemented.
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