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The latest slide marked the stock's lowest closing prices since late January of 2021, when the bubble-like buying rush of meme stocks began. From its mid-July peak of 54.97, AMC stock has fallen more than 85%. Ahead of the offering, the company showed 158.4 million shares outstanding. On Sept. 14, shares broke a three-day winning streak on news that the company completed the offering sale at an average price of $8.14 per share. It's set to air on Thursdays, Fridays, Saturdays and Sundays for a minimum of four weeks. The experience will also be available in Imax at AMC and Dolby Cinema at AMC, as well as other premium large screen formats.
Riley analyst Eric Wold estimates "box office revenues per screen for AMC recovered to 93% of 2Q19 levels vs. an industry recovery to 82% of 2Q19 levels." Wold rated the stock at neutral with a 4.50 price target. Yet even after bouncing off this past month's low of 7.05, AMC stock still lies nearly 78% below its Jan. 1 start at 35.91, including the reverse split. AMC stock started that year at 27.20 (before the reverse split) and ended at 4.07, a miserable loss of 85%. 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. "AMC may use the opportunity to repay some or all of its debt balance while AMC shares are still trading at a premium."
- At one point, the small cap's year-to-date gain reached 44%.
- 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.
- The cinema has previously used the now-defunct APE shares to pay off $548 million in debt.
- In an Aug. 24 SEC filing, AMC Entertainment said it would register 6.9 million shares to settle stockholder litigation as noted later in this story.
- The stock was down 1.81% at $14.40 at press time, according to data from Benzinga Pro.
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. Strong future profits could lead to increasing accumulation by large funds and other institutional investors. A powerful rebound could force short sellers to cover their positions, helping to propel shares even higher. In March, the company had received the green light from a shareholder vote to convert its APE units into common stock. "To protect AMC's shareholder value over the long term, we must be able to raise equity capital," Aron wrote in an open letter. That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025."
AMC stock is down 22% as of Wednesday morning and down 35.1% since the start of the year. If you buy and hold AMC Entertainment Holdings stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong. Try the Trefis machine learning engine above to see for yourself how AMC Entertainment Holdings stock is likely to behave after any specific gain or loss over a period. There are predictions once again that the MOASS is at hand, but it remains to be seen whether simply rising in sympathy with a fellow meme stock is the trigger the faithful are looking for. The market largely believes it's a relatively low risk/high reward investment by the theater operator since the $28 million AMC sunk into Hycroft is small compared to the $1.8 billion it has in liquidity available to it. On a split-adjusted basis, that is AMC's lowest close on record, according to FactSet.
This is because "short sellers trip over one another to buy the shares so they can cut their losses and exit the trade. 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. 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.
Research & Ratings AMC Entertainment Holdings Inc. Cl A(AMC)
Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks - although AMC stock appears to be an exception to this general observation. 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. 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.
- At $435.3 million for the second quarter, that’s down 12% year over year and has plummeted 75% in the last two years.
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- The company's international theaters and global admissions revenue outpaced 2019 by 12%.
This includes trading apps like Robinhood, which stopped buys on the suddenly popular stock of GameStop, Blackberry and AMC. Reddit's group WallStreetBets has delivered a huge punch to the stock market. And, the community went after gbpaud correlation other stocks, including AMC and Blackberry - to deliberately disrupt the market, and frustrate hedge fund managers. Plenty of people have lost a lot of money betting on shares, so proceed with extreme caution and use common sense.
The company's international theaters and global admissions revenue outpaced 2019 by 12%. IF AMC stock moved by -5% over five trading days, THEN over the next 21 trading days, AMC stock moves an average of 17.6 percent. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. The resolution of AMC’s court case removes “a significant overhang” for the company, Wedbush analyst Alicia Reese wrote in a note released last week.
AMC Stock Today: APEs Conversion Whacks Shares
What's Going On With AMC Entertainment Stock Monday?
Shooting for a 95 or higher, particularly at the start of a new bull market, is even better. 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. 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.
NewsAMC Entertainment Holdings Inc. Cl AAMC
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It followed the settlement of a lawsuit objecting to the move. 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. The conversion of AMC's preferred "Ape" units and reduction of shares outstanding will allow AMC to sell a substantial amount of new shares as it attempts to shore up its balance sheet. Chief Executive Adam Aron said last month that giving AMC the ability to sell stock when needed would "take bankruptcy risk off the table."
The theater chain sold millions of shares of common stock in recent years after becoming one of the so-called meme stocks popular with retail traders. The sales helped AMC stabilize itself after the Covid pandemic effectively halted the theatrical movie business. The beleaguered cinema chain AMC Entertainment has announced plans to sell more of its common shares.
On Sept. 20, MarketWatch reported CEO Aron as saying the company is considering proposals to launch a branded craft beer named "Great Ape Ale" as well as branded premium gourmet chocolate and candy. Earlier this year, AMC began selling branded popcorn at 2,600 Walmart stores. Operating inverted head and shoulders pattern cash flow expanded by $63.2 million to a total $13.4 million; on a non-GAAP basis, it generated $99.8 million in operating cash. This helped boost the company's liquidity to $643.4 million, including $208.1 million of undrawn capacity under a revolving credit facility.
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Despite a strong latest quarterly earnings beat, AMC is still struggling to stay afloat - and is being pretty open about its financial woes. That hasn’t helped the share price recover, nor does it look set to do so anytime soon if AMC plans more share sales. AMC Entertainment's stock reverse split on Thursday, August 24th 2023. The 1-10 reverse split was announced on Monday, August 14th 2023. The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, August 23rd 2023.
"Panic-buying begets more panic-buying, egged on by speculators who know the situation the short sellers are in and actively try to put the screws to them. AMC Entertainment is "one of the hottest stocks of 2021" after its shares soared nearly 300 per cent on Wednesday, January 27, says CBS News. Last Friday, Citigroup analyst Jason Bazinet maintained AMC Entertainment Holdings with a Sell rating and lowered the price target from $1.65 to $1.55. 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 sale could represent as much as 7.7% of the 519.2 million shares outstanding.