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. The addition of snacks and drinks to the offering was a major boost to revenue. As of mid-2022, F&B is the second largest source of income for the company after box-office sales and accounts for roughly 28% of the revenue. Among the many innovations are the world’s first multiplex (a location with more than one screen), the addition of cup holders to the chairs in 1981, and a website with showtimes and listings nationally.
- Adam Aron has an approval rating of 63% among the company’s employees.
- On Jan. 7, 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’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 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.
And the 3-month RS Rating at the time zoomed to a highest possible 99, according to MarketSmith data. 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.
What were AMC’s latest earnings like?
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 Accumulation/Distribution Rating has fallen to a negative D grade on a scale of A to E. This rating analyzes 13 weeks’ worth of price-and-volume action. A grade of C+ or higher points to institutions, on net, accumulating shares.
AMC CEO slams ‘prophets of doom,’ says company is ‘blazing new trails’ as it enters 2024
As part of the equity distribution agreement approved by the courts, AMC can sell about 390 million new common stock shares worth about $3.4 billion. AMC has also completed a reverse stock split that left shareholders with one share for every ten they previously held. 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. 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. On Friday, the movie theater chain’s preferred equity units, dubbed APE shares, are set to be transformed into common stock just one year after they began trading on the New York Stock Exchange.
AMC’s Blockbuster Bust: A Reality Check for Die-Hard Fans
“My negative view towards the shares is really a valuation call,” Handler said. “We continue to believe the company’s shares are trading at an irrational valuation.” Wold currently holds a $4.50 price target for the stock, on the high end of analysts who cover AMC. But the stock is now down in 10 of the past 11 trading days and has fallen more than 17% during its current five-day losing streak, according to Dow Jones Market Data. AMC shares ended the session at $4.21, plummeting to yet another record-low close. The stock has hit a series of record-low closes recently and ended Friday’s session at a then-record low of $4.56.
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. The company reported net income of $12.3 million in the third quarter, a vast improvement from a net loss of $227 million a year earlier. AMC also said it achieved diluted earnings of 8 cents a share vs. a net loss of $2.20. Adjusted EBITDA jumped to $193.7 million from a negative $12.9 million a year ago.
AMC Stock In The New Year: Is It A Buy Now? Or A Sell?
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.
AMC Stock News Headlines
The RS Rating runs from 1 to 99; for investors selecting top growth stocks, the higher the RS Rating, the better the stock in general. 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 fbs forex review same in a band of other companies that had been heavily sold short and struggling. Ahead of the offering, the company showed 158.4 million shares outstanding. A new share offering can dilute the stock; according to MarketSmith, AMC now has 198.4 million shares outstanding.
On average, they anticipate the company’s stock price to reach $9.75 in the next year. This suggests a possible upside of 117.1% from the stock’s current price. View analysts price targets for AMC or view top-rated stocks among Wall Street analysts. 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. The stock-conversion plan is part of the movie-theater chain and meme-stock darling’s ongoing battle to eliminate debt.
Wold sees the stock conversion as a way for AMC to weather the global exhibition industry’s prolonged post-pandemic recovery as well as any future impacts from the ongoing writer and actor strikes in Hollywood. AMC’s recent market performance reflects the demise of the movie-theater chain’s meme-stock status. 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.
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.
Riley Securities maintained a Neutral rating on AMC, adjusting the price target from $15 to $12. “Based on aggregate principal amount exchanged plus $27,777 aggregate accrued interest thereon through the relevant date of exchange, the Common Stock issued had an implied value of $7.47 per share,” said AMC in a Form 8-K filing. Shares of the company have nearly halved since it was announced on Aug. 14 that the APE shares would be converted. 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.
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. AMC stock on Monday got off to a bullish start, rallying nearly 1.9% in morning trading to 4.59 amid mild gains in key stock market averages. AMC’s 2023 decline is primarily attributed to a strategic move made by the company in August, which involved implementing a 10-to-1 reverse stock split. Additionally, during the same period, the company’s AMC Preferred Equity Units, previously traded as APE, were converted into common stock. 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 Entertainment’s stock is owned by a variety of institutional and retail 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.
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. That is, a holder of 10 https://forex-review.net/ shares of AMC now owns just one share, but the share price got multiplied by 10. The company on Aug. 18 issued a new 8-K filing to the SEC with details on the conversion of the APEs. The conversion resulted in the trading of a single class of AMC shares and the completed 1-for-10 reverse split of common shares.