Is AMC Entertainment Holdings Inc. (NYSE: AMC) Back In The Buying Zone?

DE Stock
DE Stock

BlackRock Fund Advisors recently announced the acquisition of new stake in AMC Entertainment Holdings Inc. (NYSE:AMC). The institutional investor has increased its shareholding in the Communication Services company by 11.46% to 3.36 million shares with purchase of 0.35 million shares. This fresh investment now brings its stake to 6.40% valued currently at $13.58 million. In addition, Invesco Capital Management LLC raised its holdings by 1.53 million to 1.63 million shares. And SSgA Funds Management, Inc. has lifted its position by 4.43% or 49382.0 shares – to 1.16 million shares.

With over 9.87 million AMC Entertainment Holdings Inc. (AMC) shares trading Friday and a closing price of $6.30 on the day, the dollar volume was approximately $62.19 million. The shares have shown a positive weekly performance of 21.39% and its price on 08/28/20 lost nearly -3.37%. Currently, there are 104.32M common shares owned by the public and among those 56.34M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for AMC have a consensus price objective of $3.50. The analysts have set the share’s price value over the next 12 months at a high of $5.00 and a low of $1.00 should the stock experience a downside. Incidentally, analysts’ outlook for the AMC Entertainment Holdings Inc. stock is 3.40 for the next 12 months. The average price target is -80.0% below its last price level and a downside to the estimated low will see the stock lose -530.0% over that period. But an upside of -26.0% will see the stock hit the forecast high price target while mean target price for the stock is $4.00.

Insiders at the company have transacted a total of 32 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 20 of these insider trades were purchases, accounting for 400,010 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 66,507 shares.

The top 3 mutual fund holders in AMC Entertainment Holdings Inc. are Vanguard Total Stock Market Index, Invesco Dynamic Leisure & Enterta, and Canada Pension Plan. Vanguard Total Stock Market Index owns 1.52 million shares of the company’s stock, all valued at over $6.15 million. Invesco Dynamic Leisure & Enterta bought 24171.0 shares to see its total holdings expand to 1.37 million shares valued at over $5.53 million and representing 2.61% of the shares outstanding. Canada Pension Plan bought 1.32 million shares to bring its total holdings to over 1.32 million shares at a value of $5.33 million. Canada Pension Plan now owns shares totaling to 2.51% of the shares outstanding.

Shares of AMC Entertainment Holdings Inc. (NYSE: AMC) opened at $6.49, down -$0.03 from a prior closing price of $6.52. However, the script later closed the day at $6.30, down -3.37%. The company’s stock has a 5-day price change of 21.39% and 18.64% over the past three months. AMC shares are trading -12.98% year to date (YTD), with the 12-month market performance down to -44.25% lower. It has a 12-month low price of $1.95 and touched a high of $12.13 over the same period. Currently, 9.87 million shares have been traded, compared to an average intraday trading volume of 6.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 25.87%, 35.16%, and 14.83% respectively.

Institutional ownership of AMC Entertainment Holdings Inc. (NYSE: AMC) shares accounts for 47.90% of the company’s 104.32M shares outstanding. Mutual fund holders own 21.33%, while other institutional holders and individual stakeholders account for 28.69% and 11.54% respectively.

It has a market capitalization of $712.78M and a beta (3y monthly) value of 1.96. The earnings-per-share (ttm) stands at -$26.91. Price movements for the stock have been influenced by the stock’s volatility, which stands at 11.09% over the week and 9.67% over the month.

Analysts forecast that AMC Entertainment Holdings Inc. (AMC) will achieve an EPS of -$3.98 for the current quarter, -$2.27 for the next quarter and -$5.22 for 2021. The lowest estimate earnings-per-share for the quarter is -$5.37 while analysts give the company a high EPS estimate of -$3.12. Comparatively, EPS for the current quarter was -$0.53 a year ago. Earnings per share for the fiscal year are expected to decrease by -269.70%, and 83.90% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate AMC Entertainment Holdings Inc. (AMC) as a “Hold” at a consensus score of 3.40. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 7 of the 10 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the AMC, a number of firms have released research notes about the stock. Credit Suisse stated their Underperform rating for the stock in a research note on June 29, 2020, with the firm’s price target at $4-$2. MKM Partners coverage for the AMC Entertainment Holdings Inc. (AMC) stock in a research note released on May 27, 2020 offered a Neutral rating with a price target of $5. Macquarie was of a view on April 23, 2020 that the stock is Neutral, while B. Riley FBR gave the stock Neutral rating on April 20, 2020, issuing a price target of $0.25- $4. Imperial Capital on their part issued In-line rating on April 15, 2020.


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