AMC Entertainment (NYSE:AMC) Trading Down 6.8% - What's Next?

Key Points

• AMC Entertainment shares fell 6.8% to approximately $2.42, with trading volume significantly below its average daily level.
• Analyst sentiment remains moderately bullish, with a consensus “Moderate Buy” rating and an average price target of $2.53; targets cited ranged from $2.50 to $4.00.
• AMC exceeded quarterly expectations, reporting $0.14 in adjusted EPS versus a projected loss of $0.03 and revenue of $1.60 billion versus $1.50 billion expected. CEO Adam Aron also purchased 250,000 shares, increasing his position by 11.43%.

AMC Entertainment Holdings, Inc. (NYSE:AMC - Get Free Report) dropped 6.8% during trading on Monday . The company traded as low as $2.40 and last traded at $2.4150. Approximately 5,900,801 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 39,130,070 shares. The stock had previously closed at $2.59.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. UBS Group reaffirmed a "buy" rating on shares of AMC Entertainment in a report on Tuesday, July 21st. Weiss Ratings upgraded shares of AMC Entertainment from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, August 3rd. Needham & Company LLC set a $3.50 target price on shares of AMC Entertainment in a research note on Tuesday, July 21st. Wedbush reaffirmed an "outperform" rating and set a $4.00 target price (up from $3.00) on shares of AMC Entertainment in a research note on Tuesday, July 21st. Finally, B. Riley Financial reiterated a "neutral" rating and issued a $2.50 price target (up from $2.25) on shares of AMC Entertainment in a report on Wednesday, July 22nd. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $2.53.

AMC Entertainment Trading Down 5.2%

The firm has a market cap of $2.19 billion, a P/E ratio of -2.29 and a beta of 2.06. The stock has a 50 day simple moving average of $2.22 and a 200-day simple moving average of $1.65.

AMC Entertainment (NYSE:AMC - Get Free Report) last posted its earnings results on Monday, July 20th. The company reported $0.14 EPS for the quarter, beating analysts' consensus estimates of ($0.03) by $0.17. The firm had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.50 billion. As a group, 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 AMC Entertainment news, CEO Adam M. Aron acquired 250,000 shares of the company's stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost 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 approximately $3,363,087.60. This represents a 11.43% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.43% of the stock is owned by company insiders.

Institutional Trading of AMC Entertainment

Several hedge funds have recently made changes to their positions in the business. Summit Asset Management LLC purchased a new position in AMC Entertainment in the second quarter worth about $28,000. Triumph Capital Management raised its position in AMC Entertainment by 139.0% during the fourth 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 period. Royal Bank of Canada lifted its stake in shares of AMC Entertainment by 90.7% in the 1st quarter. Royal Bank of Canada now owns 33,657 shares of the company's stock valued at $33,000 after purchasing an additional 16,011 shares during the last quarter. Pitcairn Co. purchased a new position in shares of AMC Entertainment in the 2nd quarter worth approximately $34,000. Finally, Powell Investment Advisors LLC purchased a new position in shares of AMC Entertainment in the 4th quarter worth approximately $39,000. 28.80% of the stock is currently 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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