AMCs stock continues its slide, hits record intraday low and record-low close

AMC Entertainment’s stock is owned by a variety of retail and institutional investors. Top institutional investors include Cutler Group LLC CA (0.00%), SG Americas Securities LLC (0.09%) and HB Wealth Management LLC (0.01%). This followed several other exchange agreements in December, and AMC completed a $350 million at-the-market equity offering in December as well. Meanwhile, AMC stock has declined by more than 8% during the past month. This is likely the result of the dilutive effects of issuing new shares. With more cuts in the pie, each shareholder’s stake, or piece of the pie, gets smaller.

1. AMC reported earnings of 1 cent per share on revenue of $1.35 billion, far surpassing analyst expectations of a loss of 4 cents per share on $1.29 billion revenue.
2. Meanwhile, AMC stock has declined by more than 8% during the past month.
3. AMC shares set a new all-time low of $4.76 on Wednesday, and the stock is trading well-below it’s 50-day moving average of $7.35.
4. The units had only been publicly traded on the New York Stock Exchange for a year, and the conversion only went ahead after a settlement was reached with its shareholders.

AMC Entertainment Holdings Inc AMC shares are trading higher by roughly 2.6% to $9.61 Friday morning. The company on Friday announced that it will report its results for the third quarter ended September 30, after the market closes on Wednesday, November 8. The stock may be also be volatile following recent momentum in anticipation of the debut of the Taylor Swift Eras Tour concert film.

Earnings and Valuation

The company’s shares are down more than 98% from their all-time closing high of $339.05 on June 2, 2021, according to Dow Jones Market Data. 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.

Smart Money Is Betting Big In AMC Options

A powerful rebound could force short sellers to cover their positions, helping to propel shares even higher. As of December 31st, there was short interest totaling 23,280,000 shares, an increase of 27.2% from the December 15th total of 18,300,000 shares. Based on an average daily volume of 20,350,000 shares, the days-to-cover ratio is currently 1.1 days. AMC https://broker-review.org/ shares set a new all-time low of $4.76 on Wednesday, and the stock is trading well-below it’s 50-day moving average of $7.35. 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.

The movie-theater chain has been on a roller-coaster ride over the past few years that took it from beleaguered pandemic victim to meme-stock phenomenon. AMC used the steep rise in its share price to tap into equity and debt markets, raising $917 million in January 2021. Wedbush’s Reese notes that AMC’s reverse stock split takes place Thursday, reducing its common share count to 52 million. “Then on Friday, AMC’s 995 million APE shares will convert to roughly 100 million AMC shares,” she said, adding that APE shares will no longer trade as of Friday. “On August 28, AMC will pay out one additional share per every 7.5 owned as of closing on August 24, resulting in 59 million pre-conversion AMC shares — a 13% increase in the pre-conversion AMC share count.”

This news follows AMC’s closing of its $350 million at-the-market (ATM) offering earlier this month. AMC raised the capital through the sale of approximately 48 million shares. The company then used the proceeds to repurchase debt or exchange debt for equity, resulting in a liabilities reduction of $62.28 million.

Adjusted EBITDA jumped to $193.7 million from a negative $12.9 million a year ago. AMC Entertainment posted a third-quarter net loss of 9 cents per share amid a healthy 45% rise in sales to $1.41 billion. According to Yahoo Finance, analysts on consensus expected a net loss of 27 cents and $1.23 billion in sales. After the company reported third-quarter results on Nov. 8, shares dropped more than 25% for the week in accelerating turnover. 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.

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.

Related news

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. 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.

About MarketBeat

This puts Adam Aron in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. The company is scheduled to release its next quarterly earnings announcement on Tuesday, February 27th 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.

Meanwhile, mutual funds owning a piece of AMC stock have dropped from 686 at the end of 2021 to as low as 261 as of the end of the fourth quarter, according to MarketSmith. Yet an 19 Composite Rating on a scale of 1 (wizened) to 99 (wizardly) in recent days remains desperately low. They include an improved 70 Earnings Per Share Rating on a scale of 1 to 99, up sharply from 23 in recent months. 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.

That broke the $261.2 million record of the 2009 concert film “Michael Jackson’s This Is It.” A reverse stock split, like the one executed by AMC, doesn’t inherently alter the fundamental value of the company itself. Instead, it increases the per-share price while reducing the total number of outstanding shares.

“AMC may use the opportunity to repay some or all of its debt balance while AMC shares are still trading at a premium.” In August last year, AMC held a very respectable 96 Relative Strength Rating. 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. According to MarketSmith, short interest — shares sold short by individual and professional investors — has rebounded to 23.9 million shares, or 12% of the stock’s newly revised float of 196.4 million shares. Let’s first revisit the hyper-fast run during the meme stock boom of 2021.

Click the link below and we’ll send you MarketBeat’s guide to investing in electric octafx review vehicle technologies (EV) and which EV stocks show the most promise.

That investment group, Beijing-based Wanda Group, is still the company’s largest shareholder. If anyone thinks AMC wants to get into a litigation fight with its shareholders over conversion plans and stock sales for fun, they’re wrong. 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. On Aug. 24, trading in AMC stock reflected the 1-for-10 reverse stock split.

Why Now Is the Time for Value Investing

AMC previously reached memestock status in 2021 when Reddit retail traders bought up the stock while it was heavily shorted. Since then, AMC has capitalized on the stock’s newfound notoriety by regularly issuing new shares to raise capital. That attitude helped AMC survive the pandemic, but now, investors have had enough. Not all breakouts work, especially when the stock market uptrend goes under pressure or into a correction. When IBD notes the market in a confirmed uptrend, it signifies that buying demand is healthy among institutional investors. Strong future profits could lead to increasing accumulation by large funds and other institutional investors.