“We expect AMC and APE shares to converge around $3 into the conversion (APEs into AMC),” she said. Shares of AMC Entertainment Holdings Inc. fell 22.3% Monday ahead of the company’s planned stock conversion. 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”. AMC Entertainment’s stock was trading at $40.70 at the start of the year. Since then, AMC shares have decreased by 80.4% and is now trading at $7.99.
Shares of GameStop and AMC Entertainment soared again on Friday, January 29, after the stock market opened. The stock was down 1.81% at $14.40 at press time, according to data from Benzinga Pro. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
- So shares of companies including AMC, Blackberry and GameStop have risen again.
- 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.
- 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.
However, some key changes in the capitalization of the stock have led to a massive decline over the past eight weeks. Wedbush’s Reese notes that AMC’s reverse stock split takes place Thursday, reducing its common share count to 52 million. «Then on Friday, AMC’s 995 million APE shares will convert to roughly 100 million AMC shares,» she said, adding that APE shares will no longer trade as of Friday.
If Taylor Swift and Beyoncé Can’t Save AMC Stock, No One Can
AMC and pop star Taylor Swift announced last week that the theater chain is serving as the distributor for a concert movie of The Eras Tour to be released in October. However, AMC used up its allotment of stock and needed shareholder approval to issue more. The company issued the preferred APE shares as part of a strategy to change its corporate voting structure and get shareholder approval to sell additional common stock. AMC was widely expected to sell additional shares after the successful conversion of the preferred APE shares into AMC common stock in August.
- No stock is guaranteed to rise or fall, and it is extremely dangerous to invest money you cannot afford to lose.
- That is, a holder of 10 shares of AMC now owns just one share, but the share price got multiplied by 10.
- Chief Executive Adam Aron said last month that giving AMC the ability to sell stock when needed would «take bankruptcy risk off the table.»
- However, some key changes in the capitalization of the stock have led to a massive decline over the past eight weeks.
This score means AMC stock had outperformed 96% of all stocks in the IBD database over the past 12 months. And the 3-month RS Rating at the time zoomed to a highest possible 99, according to MarketSmith data. On Aug. 8, the company posted a net loss of a dime a share, down from a net loss of 90 cents in the year-ago quarter, based on revised figures following the 1-for-10 reverse split, according to MarketSmith. 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. AMC Entertainment already saw some 100 million shares change hands yesterday and another 16 million have traded this morning.
The news even triggered an investor lawsuit against the company that delayed its conversion plans. 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. Under the agreement, AMC will provide an estimated $129 million of stock to common shareholders to nix any td ameritrade day trades left legal claims about the stock conversion plan in the bud. 6 Wall Street equities research analysts have issued «buy,» «hold,» and «sell» ratings for AMC Entertainment in the last twelve months. There are currently 4 sell ratings and 2 hold ratings for the stock. The consensus among Wall Street equities research analysts is that investors should «strong sell» AMC shares.
Cash Flow
On Aug. 24, trading in AMC stock reflected the 1-for-10 reverse stock split. That is, a holder of 10 shares of AMC now owns just one share, but the share price got multiplied by 10. vodafone share price forecast The action, for now, has not stopped recent bleeding in shares. The average return after a rise is understandably lower than after a fall as detailed in the previous question.
AMC may launch branded wine, named in honor of ‘Ape’ retail investors
According to newly updated data on a MarketSmith chart, the stock now holds a revised float of 156.8 million freely traded shares and 158.4 million shares outstanding. 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. Volume skyrocketed to 84.9 million shares during the Sept. 6 sell-off — a clear sign that institutions unloaded shares. Turnover jumped to the highest amount so far this year and almost eight times the stock’s average turnover over the past 50 sessions. When tickets became available in the U.S. at the end of August, AMC said the concert film set a single day record for ticket sales revenue. The company announced that Beyonce’s Renaissance World Tour is coming to movie theaters worldwide in December.
Finally, after you buy any stock with solid prospects, always heed the golden rule of investing. Keeping losses small keeps you in the investing game for the long haul. 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. Check the daily price-weighted performance of all IBD industry groups, plus rankings based on six-month performance, at IBD Data Tables. At one point, the small cap’s year-to-date gain reached 44%.
AMC Entertainment
An investor that had 100 shares of stock prior to the reverse split would have 10 shares after the split. AMC Entertainment saw a increase in short interest during the month of August. As of August 31st, there was short interest totaling 23,210,000 shares, an increase of 35.7% from the August 15th total of 17,110,000 shares. Based on an average trading volume of 10,840,000 shares, the short-interest ratio is currently 2.1 days. Currently, 14.7% of the shares of the company are sold short. AMC Entertainment Holdings, 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.
6 Wall Street analysts have issued 1 year price targets for AMC Entertainment’s stock. On average, they expect the company’s stock price to reach $19.19 in the next year. This suggests a possible upside of simple money 140.1% from the stock’s current price. View analysts price targets for AMC or view top-rated stocks among Wall Street analysts. In August last year, AMC held a very respectable 96 Relative Strength Rating.
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.
AMC Stock Rises on Beyoncé’s New Concert Movie
Sign-up to receive the latest news and ratings for AMC Entertainment and its competitors with MarketBeat’s FREE daily newsletter. Unfortunately, shares have dived below this year’s earlier low of 33.27. Meanwhile, mutual funds owning a piece of AMC stock have dropped from 686 at the end of 2021 to as low as 292 as of the end of the second quarter this year, according to MarketSmith. They include a much improved 60 Earnings Per Share Rating on a scale of 1 to 99, up sharply from 23 in recent months. Keep in mind that blockbuster movies or TV shows don’t necessarily lead to an equally sizable windfall for the theater operators.
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. 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.
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. Of eight analysts surveyed by FactSet, four have a buy rating and four have a sell rating for AMC. The film will initially begin playing at all AMC theaters in the United States and could expand as AMC’s distribution partners work to reach agreements with operators worldwide. The news comes as AMC gears up to test demand of concert-like theatrical showings with the release of pop sensation Taylor Swift’s Eras Tour on Oct. 13.