AMC Entertainment (NYSE:AMC) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded AMC Entertainment from “hold” to “strong-buy,” adding to a wave of generally positive analyst coverage. The stock now carries a consensus rating of “Moderate Buy” with a consensus target price of $2.53.
• AMC beat quarterly expectations, reporting $0.14 EPS and $1.60 billion in revenue, both ahead of Wall Street estimates. The company said attendance improved sharply and management sees progress toward positive full-year free cash flow.
• Despite the upbeat news, the stock was down 9.5% and opened at $2.23, suggesting some cooling after the earnings-driven rally. Insider and institutional buying also remains notable, including CEO Adam Aron’s recent 250,000-share purchase.

AMC Entertainment (NYSE:AMC - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the stock. Benchmark reaffirmed a "buy" rating and set a $3.00 price objective (up from $2.50) on shares of AMC Entertainment in a research report on Tuesday. Needham & Company LLC set a $3.50 target price on AMC Entertainment in a report on Tuesday. Wall Street Zen raised AMC Entertainment from a "strong sell" rating to a "hold" rating in a report on Saturday, May 9th. Citigroup restated a "sell" rating on shares of AMC Entertainment in a research note on Tuesday. Finally, UBS Group reaffirmed a "buy" rating on shares of AMC Entertainment in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $2.53.

AMC Entertainment Stock Down 9.5%

Shares of NYSE:AMC opened at $2.23 on Monday. The firm's 50 day moving average price is $1.93 and its 200 day moving average price is $1.56. The stock has a market cap of $1.99 billion, a price-to-earnings ratio of -2.08 and a beta of 2.08. AMC Entertainment has a fifty-two week low of $0.93 and a fifty-two week high of $3.55.

AMC Entertainment (NYSE:AMC - Get Free Report) last posted its quarterly earnings results on Monday, July 20th. The company reported $0.14 EPS for the quarter, topping the consensus estimate of ($0.03) by $0.17. The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.50 billion. On average, equities analysts anticipate that AMC Entertainment will post -0.37 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Adam M. Aron acquired 250,000 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were bought at an average price of $1.38 per share, with a total value of $345,000.00. Following the completion of the acquisition, the chief executive officer owned 2,437,020 shares in the company, valued at $3,363,087.60. This trade represents a 11.43% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. UBS Group AG raised its stake in AMC Entertainment by 4,537.9% during the 3rd quarter. UBS Group AG now owns 23,194,957 shares of the company's stock worth $67,265,000 after acquiring an additional 22,694,842 shares in the last quarter. Jump Financial LLC acquired a new position in AMC Entertainment in the third quarter valued at $4,827,000. JPMorgan Chase & Co. grew its holdings in shares of AMC Entertainment by 87.6% during the fourth quarter. JPMorgan Chase & Co. now owns 3,120,561 shares of the company's stock worth $4,868,000 after purchasing an additional 1,457,493 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of AMC Entertainment by 20.6% during the fourth quarter. Renaissance Technologies LLC now owns 8,009,819 shares of the company's stock worth $12,495,000 after purchasing an additional 1,369,000 shares during the last quarter. Finally, State Street Corp grew its holdings in shares of AMC Entertainment by 12.7% during the fourth quarter. State Street Corp now owns 11,349,046 shares of the company's stock worth $17,705,000 after purchasing an additional 1,278,974 shares during the last quarter. 28.80% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting AMC Entertainment

Here are the key news stories impacting AMC Entertainment this week:

• Positive Sentiment: AMC reported record quarterly revenue of $1.60 billion and an adjusted profit of $0.14 per share, both ahead of Wall Street expectations, signaling that the box-office recovery is translating into better-than-expected results. Article Title
• Positive Sentiment: Attendance rose sharply, helped by a strong slate of summer films including “The Odyssey,” which boosted ticket sales, food and beverage spending, and adjusted EBITDA to a record level. Article Title
• Positive Sentiment: Management said AMC is now “within sight” of generating positive free cash flow for a full year, while also highlighting debt reduction and improved operating momentum, which could support a longer-term turnaround view. Article Title
• Neutral Sentiment: AMC was added to the Zacks Rank #1 (Strong Buy) list, which may bolster sentiment, but this is more of a ratings-driven signal than a direct business catalyst. Article Title
• Neutral Sentiment: After the big earnings-driven rally, one report noted the stock retreating as the initial excitement around earnings and “The Odyssey” cooled, suggesting some near-term consolidation. Article Title

AMC Entertainment Company Profile

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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