Still, with gains of as much as 501% in just two weeks, it made sense to lock in at least partial profits. The 33% gain in October was pleasant to see, but AMC stock gave back all of that rebound in November. Current projections from Wold show AMC is unlikely to move into positive free cash flow territory until 2025, so having additional liquidity is necessary for the company’s immediate future.
- There are currently 3 sell ratings and 2 hold ratings for the stock.
- Since then, AMC shares have decreased by 26.5% and is now trading at $4.50.
- “AMC may use the opportunity to repay some or all of its debt balance while AMC shares are still trading at a premium.”
- Since then, AMC has capitalized on the stock’s newfound notoriety by regularly issuing new shares to raise capital.
Shares of the company have nearly halved since it was announced on Aug. 14 that the APE shares would be converted. AMC’s CEO said simplifying the stocks it offers will help it raise money more efficiently in the future. “So, generally, firms don’t really like to have a lot of preferred stocks floating around,” he said. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
After sinking almost 34% last month, shares have reversed off lows and moved higher in February so far, up more than 10%. As of January 31st, there was short interest totaling 28,620,000 shares, an increase of 18.8% from the January 15th total of 24,100,000 shares. Based on an average trading volume of 18,340,000 shares, the short-interest ratio is presently 1.6 days. Today, the chain is home to all of the top movies and offers attractions like IMA, Dolby Surround Sound, PRIME, 3-D features, Plush Power Recliners, and Dreamscape as well as full restaurants in many locations. In addition to entertainment, AMC Entertainment has a number of options for businesses and organizations that include big-screen supported meetings and events. Last month, AMC’s CEO Adam Aron released a statement on X stating the goal for the company was “Do not let AMC fall into financial ruin, ensure that AMC survives, put AMC on a path to eventually thrive”.
The company is scheduled to release its next quarterly earnings announcement on Wednesday, February 28th 2024. Sign-up to receive the latest news and ratings for AMC Entertainment and its competitors with MarketBeat’s FREE daily newsletter. 1962 is marks a major milestone for the company because it is taken over by Stanley Durwood who embarks on a mission of rapid expansion. 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. A more straightforward question to answer might be, what isn’t happening? Before this week’s announcement, a flurry of activity in AMC stock in recent weeks has left investors uneasy.
Analyst Ratings
Riley Securities said it maintains a neutral rating on AMC stock but lowered its price target to 12 from 15, Benzinga reported. After the company reported third-quarter results on Nov. 8, shares dropped more than 25% for the week in accelerating turnover. Barron’s took a look at the Russell 1000 index to find some growth stocks that trade for the right PEG ratio. The stock ended the session down 8.5%, registering its largest daily percentage decline since Jan. 3, when shares fell 8.7%. The resolution of AMC’s court case removes “a significant overhang” for the company, Wedbush analyst Alicia Reese wrote in a note released last week. “We expect AMC and APE shares to converge around $3 into the conversion (APEs into AMC),” she said.
AMC Stock News Headlines
Still, shareholders shouldn’t get too excited, as food and beverage companies have historically carried low profit margins. AMC’s branded popcorn hasn’t exactly had a significant effect on AMC stock, either. We’d like to share more about how we work and what drives our day-to-day business. Of eight analysts surveyed by FactSet, four have a buy rating and four have a sell rating for AMC.
But shares likely plunged on the dilution effect that the conversion brings. AMC was widely expected to sell additional shares after the successful conversion of the preferred APE shares into AMC common stock in August. 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.
In January 2021, WallStreetBets chat-room traders on Reddit joined in unison in buying shares and bullish call options in AMC stock. They did the same in a band of other companies that had been heavily sold short and struggling. According to newly updated data on a MarketSmith chart, the stock now holds a revised float of 196.4 million freely traded shares. Volume skyrocketed to 84.9 million shares during the Sept. 6 sell-off — a clear sign that institutions unloaded shares.
Also Included in
AMC also is planning a 10-to-1 reverse stock split of its common stock on Thursday. Things are looking up for AMC after a strong quarter ahead of the summer blockbuster, which should be reflected in its Q3 results later this year. But the company would prefer to risk the wrath of Wall Street than stop its plans to sell shares to raise some much-needed cash to fix its liquidity problems. “The continued decline in AMC shares … is likely due to investors focusing on the strong possibility that AMC begins issuing large amounts of equity to address the debt balance,” Eric Wold, an analyst at B.
However, even after news of the Taylor Swift movie, AMC stock still cratered more than 71% in August. It marks the worst drop in a single month for AMC stock, deeper than even the 49.5% drubbing it took during the month ended March 2020. gazpromneft AMC stock started that year at 27.20 (before the reverse split) and ended at 4.07, a miserable loss of 85%. Shares of AMC Entertainment Holdings Inc. hit another record intraday low Monday and also registered an all-time closing low.
The stock-conversion plan is part of the movie-theater chain and meme-stock darling’s ongoing battle to eliminate debt. These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock after investors who feared dilution rejected the company’s efforts to issue additional stock last year. AMC raised billions during the Covid pandemic selling new stock, which aided the company in paying off its debts and staved off bankruptcy during a time when movie theaters were closed or had limited product to screen to audiences. 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.
AMC reverse stock split, APE conversion remove ‘overhang,’ analyst says in upgrade
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. 596 employees have rated AMC Entertainment Chief Executive Officer Adam Aron on Glassdoor.com. Adam Aron has an approval rating of 63% among the company’s employees. This puts Adam Aron in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies.
“And just get back to being a normal corporation with common stock outstanding,” Ritter said. Preferred shares are a lot like normal stocks, but Matthew https://g-markets.net/ Spiegel at Yale said they often lock companies into paying out regular dividends. AMC has been trying to issue stock to raise money and pay down debt.
Cinema chain and memestock star AMC saw its stock crater again this week after announcing plans to sell more of its common shares. The embattled company is looking to pay off sizeable debts, but recent moves like reverse stock splits and converting equity have left shareholders diametrically opposed to AMC management. The theater chain sold millions of shares of common stock in recent years after becoming one of the so-called meme stocks popular with retail traders. The sales helped AMC stabilize itself after the Covid pandemic effectively halted the theatrical movie business. Earlier this month AMC’s revised stock-conversion plan was approved by the Delaware Chancery Court. 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.
