AMC Entertainment Holdings Inc. (AMC): Not A Time To Panic Nor Freeze


    BlackRock Fund Advisors has recently announced that it has increased stake in AMC Entertainment Holdings Inc. (NYSE:AMC) by 11.46%. After grabbing 3.36 million shares, the institutional investor is now in possession of 0.35 million shares of the Communication Services Company. The new investment brought the stake of investor firm to 6.40% having worth around $13.58 million. Moreover, Invesco Capital Management LLC increased its share by 1.53 million to have a control over 1.63 million shares. And SSgA Funds Management, Inc. raised its holdings to 49382.0 shares by acquiring 1.16 million shares or 2.21% of the stake.

    AMC Entertainment Holdings Inc. (AMC) concluded trading on 08/26/20 at a closing price of $5.60, with 4.18 million shares of worth about $23.42 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 3.90% during that period and on Wednesday the price saw a gain of about 1.08%. Currently the company’s common shares owned by public are about 104.32M shares, out of which, 56.34M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 10 analysts are covering the AMC stock and their offered price forecasts bring an average price target of $3.50. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $5.00 and could fall to a lowest price of $1.00. Analysts also issued an outlook of 3.40 for the AMC Entertainment Holdings Inc. stock for next 12 months. The stock’s current price level is -60.0% below of average price target set by the analysts, while a dip to estimated low would result in loss of -460.0 for the stock. However, touching the estimated high of $5.00 would mean a loss of -12.0% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 32 times over the past 12 months. They bought 400,010 shares in 20 of the transactions. In 12 selling transactions, insiders dumped 66,507 shares.

    Vanguard Total Stock Market Index, Invesco Dynamic Leisure & Enterta, and Canada Pension Plan are the top 3 mutual funds which are holding stakes in AMC Entertainment Holdings Inc. Vanguard Total Stock Market Index is currently holding 1.52 million shares of worth totaling $6.15 million. The company recently came buying 0.0 shares which brought its stake up to 2.90% of the company’s outstanding shares. Invesco Dynamic Leisure & Enterta bought 24171.0 shares, after which its hold over company’s outstanding shares expand to 2.61%, leaving 1.37 million shares with the mutual fund that have a worth of about $5.53 million. Canada Pension Plan, after buying 1.32 million shares, have now control over 2.51% of the stake in the company. It holds 1.32 million shares of worth $5.33 million.

    AMC Entertainment Holdings Inc. (NYSE: AMC) started trading at $5.45, below -$0.09 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $5.60, or with a gain of 1.08%. Stock saw a price change of 3.90% in past 5 days and over the past one month there was a price change of 34.94%. Year-to-date (YTD), AMC shares are showing a performance of -22.65% which decreased to -48.43% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $1.95 but also hit the highest price of $12.13 during that period. While comparing its average daily trading volume of 6.48 million shares, we see that about 4.18 million changed hands on the day. The stock is currently trading 16.35% above its 20-day simple moving average (SMA20), while that difference is up 20.73% for SMA50 and it goes to 1.42% higher than SMA200.

    BlackRock Fund Advisors acquired 3.36 million shares of AMC Entertainment Holdings Inc. having value of about $13.58 million. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 0.35 million shares in the company valued at close to $1935572.8, or have control over 11.46% stake in the company. AMC Entertainment Holdings Inc. (NYSE: AMC) currently have 104.32M outstanding shares and institutions hold larger chunk of about 47.90% of that. Holding of mutual funds in the company is about 21.27% while other institutional holders and individual stake holders have control over 28.68% and 11.54% of the stake respectively.

    The stock has a current market capitalization of $671.16M and its 3Y-monthly beta is at 1.77. It has posted earnings per share of -$26.91 in the same period. It has Quick Ratio of 0.40. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for AMC, volatility over the week remained 8.52% while standing at 8.79% over the month.

    Analysts are in expectations that AMC Entertainment Holdings Inc. (AMC) stock would likely to be making an EPS of -$3.98 in the current quarter, while forecast for next quarter ESPS is -$2.27 and it is -$5.22 for next year. For the current quarter EPS, analysts have given the company a lowest target -$5.37 which is -$3.12 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.53 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -269.70% while it is estimated to increase by 85.00% in next year.

    Analysts at 10 brokerage firms have issued recommendations for the AMC Entertainment Holdings Inc. (AMC)’s stock and average of those rates the stock at a “Hold” and assign it a score of 3.40. Out of those 10 Wall Street analysts, 0 recommended a “Buy” rating, while 7 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Credit Suisse on June 29, 2020 offering an Underperform rating for the stock and assigned a target price range of between $4 and $2 to it. Coverage by MKM Partners stated AMC Entertainment Holdings Inc. (AMC) stock as a Neutral in their note to investors on May 27, 2020, suggesting a price target of $5 for the stock. On April 23, 2020, Macquarie Downgrade their recommendations, while on April 20, 2020, B. Riley FBR Upgrade their ratings for the stock with a price target of $4. Stock get an In-line rating from Imperial Capital on April 15, 2020.


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