That year, AMC launched its APE special dividend and in 2023 completed the conversion of the APEs into AMC common stock and a reverse 1-for-10 split of common stock. AMC’s recent market performance reflects the demise of https://traderoom.info/ the movie-theater chain’s meme-stock status. AMC Entertainment Holdings, Inc owns, operates, or has an interest in cinema theatres in the United States and Europe but has also expanded into digital and streaming media.

In 2000, the company partnered to offer the first online ticket sales and expands it to all theaters, even Empire 25 in New York, the world’s busiest movie theater. In regard to market dominance, AMC Entertainment operates 22 of the US 50 busiest movie theaters and 4 of the top 5. Later, the company announced the launch of streaming services in 2019 and listed thousands of titles across a wide spectrum of genres and categories by mid-2022.

“On August 28, AMC will pay out one additional share per every 7.5 owned as of closing on August 24, resulting in 59 million pre-conversion AMC shares — a 13% increase in the pre-conversion AMC share count.” The company on Aug. 18 issued a new 8-K filing to the SEC with details on the conversion of the APEs. The conversion resulted in the trading of a single class of AMC shares and the completed 1-for-10 reverse split of common shares.

Keep in mind that blockbuster movies or TV shows don’t necessarily lead to an equally sizable windfall for the theater operators. This story examines fundamental, technical and fund ownership factors to determine if the Leawood, Kan., company with 900 theaters and 10,000 screens scores a good probability of making money for stock traders. AMC has seen its market value plummet to $894 million, according to MarketSmith. At one point on Feb. 28, 2023, the stock was valued at $14.9 billion.

1. The U.S. movie business remains below pre-pandemic levels, and the ongoing strikes in Hollywood have clouded the release slate for the rest of 2023 and 2024.
2. Shares of the company have nearly halved since it was announced on Aug. 14 that the APE shares would be converted.
3. Once shares start picking up some serious gains, watch for a new bullish chart pattern will form.
4. A new share offering can dilute the stock; according to MarketSmith, AMC now has 198.4 million shares outstanding.
5. Aron also highlighted actions including closing marginally performing movie theaters, opening higher-revenue new cinemas, and a “continued focus to manage expenses in a challenging inflationary environment.”

However, even after news of the Taylor Swift movie, AMC stock still cratered more than 71% in August. It marks the worst drop in a single month for AMC stock, deeper than even the 49.5% drubbing it took during the month ended March 2020. Wall Street currently sees AMC posting a net loss of $1.55 a share this year (down from $3.02) and a net loss of $1.65 in 2024, down mildly from an earlier estimate of -$1.82. In 2022, AMC posted a full-year adjusted net loss of $6.95 a share vs. a net loss of $11 in 2021, according to MarketSmith data. Aron also highlighted actions including closing marginally performing movie theaters, opening higher-revenue new cinemas, and a “continued focus to manage expenses in a challenging inflationary environment.” The company reported net income of $12.3 million in the third quarter, a vast improvement from a net loss of $227 million a year earlier.

AMC shares closed at a record low on Wednesday, plunging 37% to hit a price of $8.62. That’s on top of a 35% share price slide that happened after AMC converted its stock in August, taking AMC’s share price down 83.7% since the start of the year. AMC previously reached memestock status in 2021 when Reddit retail traders bought up the stock while it was heavily shorted. Since then, AMC has capitalized on the stock’s newfound notoriety by regularly issuing new shares to raise capital.

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This suggests a possible upside of 139.6% from the stock’s current price. View analysts price targets for AMC or view top-rated stocks among Wall Street analysts. On Friday, the company converted AMC Preferred Equity units, or APEs, into common shares, ending a lengthy battle after some common stockholders had tried to block the move. But while AMC still grabs plenty of attention, the company no longer fits the bill of a meme stock, according to Alicia Reese, vice president of equity research at Wedbush. “AMC has seemingly lost its meme status, its share price having come crashing back down to earth over the past several months, particularly since its APE fold-in and reverse stock split,” she told MarketWatch last month.

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The consensus among Wall Street research analysts is that investors should “strong sell” AMC shares. Set against this backdrop, Wedbush raised its AMC (AMC) price target to $19 from $2 Thursday. “AMC’s court case resolution removes a significant overhang, forex trading career and we expect AMC shares to settle around our new $19 price target post-conversion and post-reverse-stock-split,” said Wedbush analyst Alicia Reese, in a note. However, AMC used up its allotment of stock and needed shareholder approval to issue more.

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Sign-up to receive the latest news and ratings for AMC Entertainment and its competitors with MarketBeat’s FREE daily newsletter. The addition of snacks and drinks to the offering was a major boost to revenue. 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. Among the many innovations are the world’s first multiplex (a location with more than one screen), the addition of cup holders to the chairs in 1981, and a website with showtimes and listings nationally.

That hasn’t helped the share price recover, nor does it look set to do so anytime soon if AMC plans more share sales. 6 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for AMC Entertainment in the last year. There are currently 4 sell ratings and 2 hold ratings for the stock.

AMC Stock News Headlines

The sales helped AMC stabilize itself after the Covid pandemic effectively halted the theatrical movie business. In August, it was announced that the struggling cinema chain had successfully converted its preferred equity units, called APE shares (after the 2021 AMC memestock craze, believe it or not), into AMC common stock. The plan was initially shared back in March, quickly drawing the ire of AMC shareholders and sparking litigation. The beleaguered cinema chain AMC Entertainment has announced plans to sell more of its common shares. The ‘at the market’ offering program will sell up to 40 million shares of class A common stock, with Citigroup Global Markets, Barclays Capital, B. Riley Securities, and Goldman Sachs facilitating the sale.

“So, generally, firms don’t really like to have a lot of preferred stocks floating around,” he said. Still, shareholders shouldn’t get too excited, as food and beverage companies have historically carried low profit margins. AMC’s branded popcorn hasn’t exactly had a significant effect on AMC stock, either.