AMC Entertainment (NYSE:AMC) Trading Down 11.3% – Here’s What Happened

AMC Entertainment Holdings, Inc. (NYSE:AMC) shares fell 11.3% on Thursday . The company traded as low as $1.78 and last traded at $1.7750. Approximately 11,096,602 shares were traded during mid-day trading, a decline of 70% from the average session volume of 36,538,184 shares. The stock had previously closed at $2.00.

More AMC Entertainment News

Here are the key news stories impacting AMC Entertainment this week:

• Positive Sentiment: AMC plans to use the new capital to redeem higher-cost debt, which could improve liquidity and reduce financing pressure. AMC Entertainment Holdings, Inc. Announces Closing of $200 Million Registered Direct Offering of Common Stock
• Neutral Sentiment: Analysts currently have a consensus “Hold” view on AMC, suggesting limited near-term conviction from Wall Street. AMC Entertainment Holdings, Inc. (NYSE:AMC) Given Consensus Rating of “Hold” by Analysts
• Negative Sentiment: The 95.25 million-share offering is highly dilutive and has been the main driver of the recent selloff in AMC shares. AMC Stock Tumbles Toward Latest Offering Price
• Negative Sentiment: Commentary from the latest market coverage says AMC stock is down because investors are reacting to the new $200 million capital raise and share dilution. The $200 Million Reason AMC Stock Is Down Today

Analyst Upgrades and Downgrades

A number of research firms have commented on AMC. Citigroup boosted their target price on AMC Entertainment from $1.10 to $1.20 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Weiss Ratings upgraded shares of AMC Entertainment from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. Benchmark raised shares of AMC Entertainment from a “hold” rating to a “buy” rating and set a $2.50 price objective on the stock in a research note on Wednesday, May 6th. B. Riley Financial restated a “buy” rating on shares of AMC Entertainment in a report on Thursday, June 11th. Finally, Wall Street Zen upgraded shares of AMC Entertainment from a “strong sell” rating to a “hold” rating in a research report on Saturday, May 9th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $2.24.

AMC Entertainment Price Performance

The business’s 50-day moving average price is $1.80 and its two-hundred day moving average price is $1.55. The firm has a market cap of $1.09 billion, a price-to-earnings ratio of -1.67 and a beta of 2.22.

AMC Entertainment (NYSE:AMC) last announced its earnings results on Tuesday, May 5th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.04). The company had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $979.19 million. During the same quarter in the prior year, the business posted ($0.58) EPS. The business’s revenue was up 21.2% compared to the same quarter last year. As a group, sell-side analysts forecast that AMC Entertainment Holdings, Inc. will post -0.37 earnings per share for the current year.

Insider Buying and Selling at AMC Entertainment

In other AMC Entertainment news, CEO Adam M. Aron purchased 250,000 shares of AMC Entertainment stock in a transaction on Tuesday, May 19th. The shares were bought at an average price of $1.38 per share, with a total value of $345,000.00. Following the purchase, the chief executive officer directly owned 2,437,020 shares in the company, valued at $3,363,087.60. This trade represents a 11.43% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AMC Entertainment

Several institutional investors have recently added to or reduced their stakes in AMC. Vanguard Group Inc. lifted its position in AMC Entertainment by 13.1% during the third quarter. Vanguard Group Inc. now owns 50,119,260 shares of the company’s stock worth $145,346,000 after buying an additional 5,793,996 shares during the period. UBS Group AG grew its holdings in AMC Entertainment by 4,537.9% in the 3rd quarter. UBS Group AG now owns 23,194,957 shares of the company’s stock valued at $67,265,000 after buying an additional 22,694,842 shares during the period. Geode Capital Management LLC grew its holdings in AMC Entertainment by 9.2% in the 4th quarter. Geode Capital Management LLC now owns 12,254,550 shares of the company’s stock valued at $19,121,000 after buying an additional 1,029,668 shares during the period. State Street Corp increased its stake in shares of AMC Entertainment by 12.7% during the 4th quarter. State Street Corp now owns 11,349,046 shares of the company’s stock valued at $17,705,000 after acquiring an additional 1,278,974 shares during the last quarter. Finally, Renaissance Technologies LLC lifted its holdings in shares of AMC Entertainment by 20.6% during the 4th quarter. Renaissance Technologies LLC now owns 8,009,819 shares of the company’s stock worth $12,495,000 after acquiring an additional 1,369,000 shares during the period. 28.80% of the stock is currently owned by institutional investors and hedge funds.

AMC Entertainment Company Profile

AMC Entertainment Holdings, Inc operates as a leading movie exhibition company, specializing in the presentation of theatrical motion pictures across a network of multiplex cinemas. The company’s core business activities encompass ticket sales, concession and refreshment services, and the licensing of premium viewing formats. AMC offers a variety of auditorium experiences, including IMAX®, Dolby Cinema™, and Cinemark’s RealD 3D systems, designed to enhance audience engagement through superior sound, visual clarity, and seating comfort.

Originally founded in 1920 with its first theatre in Kansas City, AMC has evolved into one of the largest theater chains in the world.