The company’s share count has also nearly quintupled from pre-pandemic levels to 502 million shares outstanding. Murdick had also owned AMC’s debt, likely at distressed prices, so the equity raise may have been a ploy to increase the value of its debt by increasing AMC’s creditworthiness. Although a savvy trade by Murdick, it apparently sold too early as well, as AMC’s shares skyrocketed over 100% the next day, reaching a high of $72.62, and prompting trading halts. Incredibly, AMC was allowed to sell another 11.5 million more shares to the public the following day at $50.85 per share, raising a whopping $587.4 million while only minimally diluting shareholders. On May 26, sell-side firm CFRA upgraded AMC, but only from “Sell” to “Neutral” and giving an $18 price target.
- Converting these preferred units to common stock could increase the existing share count by nearly threefold, which would likely kill per-share investment returns barring a remarkable recovery by AMC’s business.
- In August, AMC issued a special dividend, giving shareholders one unit of AMC Preferred Equity for each common share.
- Discover which analysts rank highest for AMC overall weighted by direction, price target, and price movement.
- It’s still worth $6 — less than the $10 price at which investors bought shares.
- Investors should closely follow theater attendance over the coming quarters, which likely must be at least comparable to pre-pandemic levels for AMC to generate cash flow over the long term.
AMC Entertainment: Mixed Q3 2024 Results With Improved Concession Sales And Weaker Attendance
Leading the way is video game retailer GameStop, whose shares have soared approximately 180% to $48.75 after closing at $17.39 Friday. The Motley Fool has no position in any of the stocks mentioned. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.
Price Target and Rating
That coincided with the hashtag “#AMCSTRONG” trending on Twitter. The stock rallied about 20% that day, and continued to rise through the end of the month. A short squeeze likely played into things, as nearly 20% of shares outstanding were sold short heading into May. Shares of AMC Entertainment (AMC 1.34%) skyrocketed 160.4% in May, according to data from S&P Global Market Intelligence. The stock’s rise has continued into June, along with more capital raises. On June 1, the company raised $230.5 million at $27.12 per share from hedge fund Murdick Capital.
AMC Offsets Lower Q3 Attendance With Higher Ticket Prices, Concessions: Analyst Sees ‘Strategic Pricing’ Success
Investors should closely follow theater attendance over the coming quarters, which likely must be at least comparable to pre-pandemic levels for AMC to generate cash flow over the long term. The company has $1.1 billion in available liquidity (cash plus open credit lines), so it does have time to right the ship. 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 stock surged 20% on the news, and Murdick sold all of its stake that same day, telling clients shares were “massively overvalued,” according to Bloomberg. The problem for shareholders is that this results in potentially massive dilution down the road. Converting these preferred units to common stock could increase the existing share count by nearly threefold, which would likely kill per-share investment returns barring a remarkable recovery by AMC’s business. AMC Entertainment Holdings, daily treasury yield curve rates 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.
Upgrade to MarketBeat All Access to add more stocks to your watchlist. Wondering when you’ll finally be able to invest in SpaceX, StarLink, or The Boring Company? Click the link below to learn when Elon Musk will let these companies finally IPO. In 2023, AMC’s revenue was $4.81 billion, an increase of 23.04% compared to the previous year’s $3.91 billion. Discover which analysts rank highest on predicting the directional movement of AMC.
Until its financials improve to the point that massive dilution is off the table, owning the stock is risky, even after its 90% decline. AMC Entertainment Holdings AMC offset lower attendance with higher ticket prices and food and beverage revenue to help beat third-quarter revenue and earnings per share estimates, which could help the… The US box office made a spectacular comeback in the third quarter with ticket sales hitting a number not seen since the start of the pandemic. Movie-theater chain and original meme stock AMC expects a box-office boost from a slate of major releases in 2025. As far as anyone knows, the companies whose stocks are being traded as meme stocks forex for dummies forex for beginners forex market basics haven’t actually done anything to reorient their fortunes in a way that would merit the tremendous run-up in their stock prices.
The movie-theater chain and original meme stock is riding a broader industry rebound, according to an analyst at B. Basically, shares seem massively overvalued from a fundamental point of view, and the stock is extremely risky at these levels. That doesn’t mean investors can’t make money on technical buying bursts like we’ve seen over the past month, but that’s not really investing; it’s subscribing to the greater fool theory. With vaccinations accelerating faster than thought since March, reopening optimism apparently reignited the WallStreetBets message board on Reddit, because AMC’s stock began appreciating shortly after earnings. In August, AMC issued a special dividend, giving shareholders one unit of AMC Preferred Equity for each common share.
These stocks could bask in the ‘Glicked’ glow as ‘Gladiator II’ and ‘Wicked’ open
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. The big exception to that rule is if the company can use that cash to make high-return investments that will increase intrinsic value going forward. For instance, if a company is really worth $1, but is able to sell convert us dollars to swedish kronor shares at $10, let’s say, doubling its share count, it increases the company’s intrinsic value from $1 to $6 ($1 plus $5 per share in cash).
It’s still worth $6 — less than the $10 price at which investors bought shares. Ironically, the more shares the company sells above intrinsic value, the closer intrinsic value will move toward the sale price, but it will never exceed that value. AMC Entertainment Holdings Inc. will report third-quarter results after market close Wednesday amid signs that the cinema industry is bouncing back from the devastation wrought by the COVID-19 pandemi… AMC Entertainment Holdings Inc AMC is set to report third-quarter earnings Wednesday.
