AMC Entertainment (NYSE:AMC) Trading 9% Higher - Should You Buy?

Key Points

• AMC shares rose 9% to $2.7350 on unusually heavy volume, with nearly 49.5 million shares traded versus an average of 39.5 million.
• Analyst sentiment was mixed but averaged to a “Moderate Buy”, with a consensus price target of $2.53. Targets ranged from $1.50 to $3.50, while two analysts rated the stock a Strong Buy and two rated it a Sell.
• AMC beat quarterly expectations, reporting $0.14 in earnings per share versus a projected $0.03 loss and revenue of $1.60 billion versus a $1.50 billion estimate. CEO Adam Aron also bought 250,000 shares, although analysts still forecast a full-year loss.

AMC Entertainment Holdings, Inc. (NYSE:AMC - Get Free Report) was up 9% during trading on Tuesday . The stock traded as high as $2.76 and last traded at $2.7350. 49,459,545 shares were traded during mid-day trading, an increase of 25% from the average session volume of 39,492,301 shares. The stock had previously closed at $2.51.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on AMC. Roth Capital set a $1.50 price objective on shares of AMC Entertainment in a report on Tuesday, May 19th. Weiss Ratings lowered shares of AMC Entertainment from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, July 20th. B. Riley Financial reissued a "neutral" rating and issued a $2.50 price target (up from $2.25) on shares of AMC Entertainment in a research report on Wednesday, July 22nd. Needham & Company LLC set a $3.50 price target on shares of AMC Entertainment in a research note on Tuesday, July 21st. Finally, Texas Capital raised AMC Entertainment from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $2.53.

AMC Entertainment Trading Up 6.2%

The firm has a market cap of $2.38 billion, a PE ratio of -2.50 and a beta of 2.08. The firm has a 50 day moving average price of $2.01 and a 200-day moving average price of $1.58.

AMC Entertainment (NYSE:AMC - Get Free Report) last released its earnings results on Monday, July 20th. The company reported $0.14 earnings per share for the quarter, topping analysts' consensus estimates of ($0.03) by $0.17. The firm had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.50 billion. Equities analysts forecast that AMC Entertainment Holdings, Inc. will post -0.2 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Adam M. Aron acquired 250,000 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were bought at an average cost of $1.38 per share, with a total value of $345,000.00. Following the transaction, the chief executive officer owned 2,437,020 shares in the company, valued at approximately $3,363,087.60. This trade represents a 11.43% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On AMC Entertainment

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

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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