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. The https://broker-review.org/ sale could represent as much as 7.7% of the 519.2 million shares outstanding. 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.
The stock has hit a series of record-low closes recently and ended Friday’s session at a then-record low of $4.56. 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”. For a few days in August 2022, AMC tried to cross a nearly 12-month trendline that connects the September 2021 peak (32.43, adjusted for a stock split) with lower highs in November 2021 (28.23) and early April 2022 (21.09).
- 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.
- It’s all fun and games, but AMC has to get serious about fixing its free cash flow or risk bankruptcy.
- 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.
- That broke the $261.2 million record of the 2009 concert film ”Michael Jackson’s This Is It.”
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. AMC stock started that year at 27.20 (before the reverse split) and ended at 4.07, a miserable loss of 85%.
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. 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.
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The film is distributed exclusively by AMC Theatres Distribution. 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. On a brighter note, AMC announced this morning that it would expand its presence in the “Premium Gourmet Candies” sector by offering its own line of branded chocolate candies. These include chocolate covered pretzels, almonds, raisins and peanuts. The company’s new sweets will be available in AMC theaters starting this week.
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AMC Entertainment’s stock was trading at $6.12 at the beginning of the year. Since then, AMC stock has decreased by 26.3% and is now trading at $4.51. Riley Securities maintained a Neutral rating on AMC, adjusting the price target from $15 to $12. “Based on aggregate principal amount exchanged plus velocity trade $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.
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. At $435.3 million for the second quarter, that’s down 12% year over year and has plummeted 75% in the last two years. In short – it makes sense why AMC is still forging ahead with its share sale plans despite a relatively positive earnings beat. AMC shares closed at a record low on Wednesday, plunging 37% to hit a price of $8.62. 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 CEO has repeatedly warned that AMC faces liquidity challenges. Ironically, the stock price plunge might boost short interest and start the memestock cycle all over again. It’s all fun and games, but AMC has to get serious about fixing its free cash flow or risk bankruptcy. AMC’s latest earnings report for the second quarter was a bright spot against a dismal performance for the stock. 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.
AMC Share Price Plunges As Company Announces Stock Sale Plan
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 hits another record low close, extends losing streak to four days
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. 6 Wall Street research analysts have issued ”buy,” ”hold,” and ”sell” ratings for AMC Entertainment in the last year. There are currently 4 sell ratings and 2 hold ratings for the stock. The consensus among Wall Street research analysts is that investors should ”strong sell” AMC shares.
On Sept. 1, the company reported that pop music icon Taylor Swift’s concert film shattered records for single-day ticket sales revenue at $26 million. 6 Wall Street analysts have issued 12-month price objectives for AMC Entertainment’s shares. On average, they predict the company’s stock price to reach $9.75 in the next twelve months. This suggests a possible upside of 116.2% 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.
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AMC’s stock continues its slide, hits record intraday low and another record-low close
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.
The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, August 23rd 2023. An investor that had 100 shares of stock prior to the reverse split would have 10 shares after the split. AMC Entertainment Holdings, Inc., is the world’s largest movie theater chain with over 11,000 screens. The company was founded in 1920 by the Dubinsky Family and is headquartered in Leawood, Kansas. The company has been in business for over 90 years but went public in 2013 after getting bought out by an investment group seeking to boost the company’s global presence.
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. The company made headlines again in 2011 with the launch of its STUBS rewards program, a premier program that offers discounts and other deals to its members. AMC Entertainment announced that the “Taylor Swift – The Eras Tour” concert film officially became the highest grossing concert and documentary film in box office history.
Of eight analysts surveyed by FactSet, four have a buy rating and four have a sell rating for AMC. An excellent set-up means the big boys and girls on Wall Street are more inclined to buy and hold shares, not dump them. Once a strong chart pattern has been established, an IBD-targeting breakout offers traders the best opportunity to reap gains at the start of a potential big run. The 33% gain in October was pleasant to see, but AMC stock gave back all of that rebound in November. 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.