Why AMC Entertainment Skyrocketed 160 4% in May The Motley Fool

The company has more than $4 billion in long-term debt on the books and interest… A “more diversified and consistent” film slate is the key to success for theater is now the time to buy stocks chains, one analyst says. According to 5 analysts, the average rating for AMC stock is «Sell.» The 12-month stock price forecast is $4.3, which is a decrease of -5.49% from the latest price. Discover which analysts rank highest on predicting the price target of AMC.

Still, assuming AMC can get back to its prior free cash flow on the new quintupled share count, that’s only about $0.71 per share. So, at the current stock price, shares are valued at 67.5 times 2019 adjusted free cash flow per share. All in all, AMC has raised $1.246 billion this quarter, adding to the $813.1 million in cash it had at the end of the first quarter. The company is still likely burning through cash, so it likely has a little less than $2 billion in cash against a still-high $5.46 billion in debt — and some of that at very high interest rates.

1. Shares of AMC Entertainment (AMC 1.34%) skyrocketed 160.4% in May, according to data from S&P Global Market Intelligence.
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3. 1962 is marks a major milestone for the company because it is taken over by Stanley Durwood who embarks on a mission of rapid expansion.
4. AMC Entertainment’s stock was trading at $6.12 at the start of the year.
5. As of mid-2022, F&B is the second largest source of income for the company after box-office sales and accounts for roughly 28% of the revenue.

Studios are shortening the window for theater exclusivity, and some may even begin releasing titles directly to streaming services in conjunction with theater releases. A survey by Morning Consult earlier this year indicated that 62% of respondents felt comfortable enough to attend a movie in a theater, a sign that people are moving past the pandemic. Still, 55% said they are more interested in watching movies from their homes, and 50% blamed high prices as a reason to avoid theaters.

Riley upgraded the stock, saying the raise likely lessened the need for more capital ahead of an industry recovery. Riley only raised its price target from $13 to $16 — less than half of where shares trade now. AMC Entertainment Holdings Inc. reported better-than expected third-quarter revenue and a narrower loss after market close Wednesday, with the movie-theater chain and original meme stock pointing towa… In 2019, before the pandemic, AMC reported «adjusted» free cash flow of $358 million — and that figure incorporated some generous adjustments.

For Moviegoers Seeking out an «Extra Large» Screen at the Movies, AMC Theatres® Unveils XL at AMC

The company burned through more than $92 million in cash in Q3. Despite numerous debt list of forex zero line cross indicators cyprus forex regulation deals, the balance sheet is still in terrible s… The domestic box office is on the rebound, but AMC’s debt load is preventing it from fully capitalizing on the revival.

AMC Stock News Headlines

AMC Entertainment is planning to reinvest up to $1.5 billion in its theaters but faces a balancing act amid debt repayments, according to analyst firm Wedbush. But on Monday, one of the chief meme-stock cheerleaders, known by the online moniker Roaring Kitty, posted a meme signaling he was planning to become active again. AMC Entertainment’s stock was trading at $6.12 at the start of the year. Since then, AMC stock has decreased by 25.7% and is now trading at $4.55. Highly anticipated movies «Wicked» and «Gladiator II» are being released on the same day and come shortly ahead of «Moana 2,» setting up what could be a record-breaking Thanksgiving weekend for the mo…

In other words, theaters aren’t delivering an experience that justifies the effort and money. AMC Entertainment’s stock reverse split on the morning of Thursday, August 24th 2023. The 1-10 reverse split was announced on Monday, August What is copy trade 14th 2023. The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, August 23rd 2023. An investor that had 100 shares of stock prior to the reverse split would have 10 shares after the split.

AMC is poised to ride the box office rebound, as long as its debt doesn’t get in the way

Last month, it filed paperwork to sell up to another 425 million of these preferred equity units. Management can convert the preferred units into common shares if the board authorizes and shareholders approve with a vote. Of course, movie theaters weren’t exactly a growth industry prior to COVID, and could very well struggle to fully bounce back.

AMC’s long-term survival doesn’t necessarily mean it will be a rewarding investment for shareholders. On a positive note, the stock’s sky-high valuation after its short squeeze has largely dissipated. Today, its enterprise value, which is its market cap plus its net debt, is still 37% higher than three years ago (pre-pandemic), but it’s well off the 400% bump it saw during its squeeze. AMC’s current struggle makes that valuation virtually impossible to justify. While accretive theater acquisitions could add value, I doubt any acquisitions would materially increase AMC’s free cash flow, since AMC already has massive scale as the largest theater chain in the world.

The company was founded in 1920 by the Dubinsky Family and is headquartered in Leawood, Kansas. The company has been in business for over 90 years but went public in 2013 after getting bought out by an investment group seeking to boost the company’s global presence. That investment group, Beijing-based Wanda Group, is still the company’s largest shareholder.