Stock Traders Buy High Volume of Call Options on AMC Entertainment (NYSE:AMC)

Key Points

• AMC call-option activity surged: Traders purchased 161,950 call options, about 50% above the typical volume of 107,856.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $2.67; ratings range from Strong Buy to Sell.
• AMC shares rose 12.1% to $3.29 on heavy trading volume, while institutional investors own approximately 28.8% of the company.

AMC Entertainment Holdings, Inc. (NYSE:AMC - Get Free Report) was the target of unusually large options trading activity on Monday. Traders bought 161,950 call options on the stock. This represents an increase of 50% compared to the typical volume of 107,856 call options.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Wedbush reissued an "outperform" rating and issued a $4.00 target price (up from $3.00) on shares of AMC Entertainment in a research report on Tuesday, July 21st. Citigroup reaffirmed a "sell" rating and set a $2.20 price target (up from $1.80) on shares of AMC Entertainment in a research report on Friday. Benchmark reiterated a "buy" rating and set a $3.00 price target (up from $2.50) on shares of AMC Entertainment in a research note on Tuesday, July 21st. Zacks Research lowered AMC Entertainment from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 18th. Finally, Weiss Ratings upgraded AMC Entertainment from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, August 31st. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $2.67.

Hedge Funds Weigh In On AMC Entertainment

Institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC grew its stake in AMC Entertainment by 64.9% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 25,407 shares of the company's stock valued at $48,000 after acquiring an additional 10,003 shares during the period. Tidal Investments LLC raised its position in AMC Entertainment by 25.6% during the second quarter. Tidal Investments LLC now owns 63,953 shares of the company's stock worth $122,000 after acquiring an additional 13,028 shares during the period. Summit Asset Management LLC acquired a new position in AMC Entertainment during the second quarter worth $28,000. Global Retirement Partners LLC lifted its holdings in AMC Entertainment by 24.4% during the fourth quarter. Global Retirement Partners LLC now owns 76,419 shares of the company's stock valued at $119,000 after purchasing an additional 14,978 shares in the last quarter. Finally, Royal Bank of Canada lifted its holdings in AMC Entertainment by 90.7% during the first 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 in the last quarter. Hedge funds and other institutional investors own 28.80% of the company's stock.

AMC Entertainment Trading Up 12.1%

Shares of AMC stock traded up $0.35 during trading hours on Monday, hitting $3.29. The company's stock had a trading volume of 72,503,242 shares, compared to its average volume of 36,520,934. The stock has a market cap of $2.94 billion, a PE ratio of -3.08 and a beta of 2.01. AMC Entertainment has a 12-month low of $0.93 and a 12-month high of $3.40. The company has a 50 day moving average of $2.59 and a 200 day moving average of $1.97.

AMC Entertainment (NYSE:AMC - Get Free Report) last issued its earnings results on Monday, July 20th. The company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.17. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.50 billion. As a group, analysts anticipate that AMC Entertainment will post -0.2 earnings per share for the current fiscal year.

About AMC Entertainment

AMC Entertainment Holdings, Inc is a movie exhibition company that operates cinemas in the United States and internationally. Its theaters show first-run films and offer a range of viewing formats, including premium large-screen, enhanced sound and 3D experiences, along with reserved seating and other in-theater amenities.

The company generates revenue primarily from movie admissions and the sale of food and beverages, including popcorn, drinks and other concessions. AMC also operates advertising and promotional programs, loyalty offerings through AMC Stubs, and initiatives that extend its cinema brand beyond traditional theater operations, including the sale of AMC-branded popcorn through retail channels.

AMC traces its history to 1920, when the Dubinsky Brothers opened their first theater in Kansas City, Missouri.

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