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A new share offering can dilute the stock; according to MarketSmith, AMC now has 198.4 million shares outstanding. 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 and a 49.9% plunge in October the same year. AMC Chair and CEO Adam Aron noted that both AMC’s full-year revenue and adjusted EBITDA hit the highest levels since 2019, the year right before the Covid pandemic.

Check the daily price-weighted performance of all IBD industry groups, plus rankings based on six-month performance, at IBD Data Tables. According to newly updated data on a MarketSurge chart, the stock now holds a revised float of 196.4 million freely traded shares. AMC shares plunged another 36% in September last year to 7.99. The 33% gain in October was pleasant to see, but AMC stock gave back all of that rebound in November. Wall Street currently sees AMC posting a net loss of $1.55 a share this year (down from $3.02) and a net loss of $1.65 in 2024, down mildly from an earlier estimate of -$1.82.

  1. The company was founded in 1920 by the Dubinsky Family and is headquartered in Leawood, Kansas.
  2. 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.
  3. The Accumulation/Distribution Rating has dropped to a neutral C grade on a scale of A to E.
  4. 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.
  5. The logic behind this is that increasing AMC’s share price through the split gives the struggling cinema chain more wiggle room to prop up its balance sheet.

This means AMC has sharply underperformed the S&P 500, especially since mid-August. “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. AMC Entertainment’s stock is owned by a number of retail and institutional investors.

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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. 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. Strong future profits could lead to increasing accumulation by large funds and other institutional investors.

The stock-conversion 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. 5 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for AMC Entertainment in the last year. There are currently 3 sell ratings and 2 hold ratings for the stock. The consensus among Wall Street analysts is that investors should “strong sell” AMC shares.

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In 2022, AMC posted a full-year adjusted net loss of $6.95 a share vs. a net loss of $11 in 2021, according to MarketSmith data. In Q3 of last year, the company reported net income of $12.3 million vs. a net loss of $227 million a year earlier. AMC also said it achieved diluted earnings of 8 cents a share vs. a net what you need to start crypto trading loss of $2.20. Adjusted EBITDA jumped to $193.7 million from a negative $12.9 million a year ago. On the positive side, AMC said adjusted EBITDA (earnings before interest, tax, depreciation and amortization) soared 193% to $42.5 million. It held $884 million in cash and cash equivalents at the end of the quarter.

In the week ended June 4, AMC stock almost finished up 100% or more for a second straight week. 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. AMC shares closed at a record low on Wednesday, plunging 37% to hit a price of $8.62.

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“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. Of eight analysts surveyed by FactSet, four have a buy rating and four have a sell rating for AMC. Wednesday’s drop was the biggest one-day sell-off AMC stock has seen since February 2021. The previous record-low stock price close was $10.73, seen in January 2021, with Wednesday’s close considerably under that. Sign-up to receive the latest news and ratings for AMC Entertainment and its competitors with MarketBeat’s FREE daily newsletter.

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 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. 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.

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. 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%.

This score means AMC stock had outperformed 96% of all stocks 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 MarketSmith data. 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. Short sellers, betting on a decline in the stock, at some point may have to do a sudden about-face.