AMC Entertainment (NYSE:AMC) Shares Gap Up - Should You Buy?

Key Points

• AMC shares gapped up 3.8% on Wednesday, opening at $2.045 after closing at $1.96, with heavy trading volume of more than 18 million shares.
• Recent analyst actions were mixed: Benchmark upgraded AMC to buy with a $2.50 target, while Citigroup kept a sell rating; MarketBeat says the overall consensus remains Hold with a $1.80 average target price.
• AMC reported quarterly revenue of $1.05 billion, topping estimates and rising 21.2% year over year, but it still posted an adjusted loss of $0.36 per share, missing expectations.

AMC Entertainment Holdings, Inc. (NYSE:AMC - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $1.96, but opened at $2.0450. AMC Entertainment shares last traded at $2.0450, with a volume of 18,001,098 shares.

Analyst Ratings Changes

Several research analysts recently commented on AMC shares. Benchmark raised AMC Entertainment from a "hold" rating to a "buy" rating and set a $2.50 target price for the company in a research note on Wednesday, May 6th. Citigroup upped their target price on shares of AMC Entertainment from $1.10 to $1.20 and gave the stock a "sell" rating in a research note on Thursday, May 7th. Roth Capital set a $1.50 price target on shares of AMC Entertainment in a research note on Tuesday, May 19th. B. Riley Financial reissued a "buy" rating on shares of AMC Entertainment in a research report on Thursday, June 11th. Finally, Weiss Ratings raised shares of AMC Entertainment from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, AMC Entertainment presently has an average rating of "Hold" and an average target price of $1.80.

AMC Entertainment Trading Up 3.8%

The business's fifty day moving average price is $1.87 and its 200 day moving average price is $1.54. The firm has a market capitalization of $1.82 billion, a price-to-earnings ratio of -1.92 and a beta of 2.08.

AMC Entertainment (NYSE:AMC - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.32) by ($0.04). The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $979.19 million. The company's revenue was up 21.2% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.58) EPS. As a group, sell-side analysts forecast that AMC Entertainment Holdings, Inc. will post -0.37 earnings per share for the current fiscal year.

Insider Transactions at AMC Entertainment

In other news, CEO Adam M. Aron purchased 250,000 shares of the business's stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $1.38 per share, with a total value of $345,000.00. Following the purchase, the chief executive officer directly owned 2,437,020 shares of the company's stock, valued at $3,363,087.60. This represents a 11.43% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On AMC Entertainment

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Pitcairn Co. acquired a new stake in shares of AMC Entertainment in the second quarter worth approximately $34,000. One Capital Management LLC purchased a new position in AMC Entertainment during the third quarter worth approximately $44,000. Swiss Life Asset Management Ltd raised its stake in AMC Entertainment by 59.5% during the third quarter. Swiss Life Asset Management Ltd now owns 17,512 shares of the company's stock worth $51,000 after purchasing an additional 6,536 shares during the period. Triumph Capital Management boosted its holdings in shares of AMC Entertainment by 139.0% in the 4th quarter. Triumph Capital Management now owns 19,000 shares of the company's stock valued at $30,000 after purchasing an additional 11,050 shares during the last quarter. Finally, Voleon Capital Management LP purchased a new stake in shares of AMC Entertainment during the 3rd quarter valued at $59,000. 28.80% of the stock is currently owned by hedge funds and other institutional investors.

About AMC Entertainment

AMC Entertainment Holdings, Inc operates as a leading movie exhibition company, specializing in the presentation of theatrical motion pictures across a network of multiplex cinemas. The company's core business activities encompass ticket sales, concession and refreshment services, and the licensing of premium viewing formats. AMC offers a variety of auditorium experiences, including IMAX®, Dolby Cinema™, and Cinemark's RealD 3D systems, designed to enhance audience engagement through superior sound, visual clarity, and seating comfort.

Originally founded in 1920 with its first theatre in Kansas City, AMC has evolved into one of the largest theater chains in the world.

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