AMC Entertainment (NYSE:AMC) Shares Gap Down – Should You Sell?

AMC Entertainment Holdings, Inc. (NYSE:AMC)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $2.76, but opened at $2.11. AMC Entertainment shares last traded at $2.0950, with a volume of 31,944,251 shares.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on AMC. Weiss Ratings reissued a “sell (e+)” rating on shares of AMC Entertainment in a research report on Monday, April 20th. Citigroup lifted their price target on shares of AMC Entertainment from $1.10 to $1.20 and gave the company a “sell” rating in a research note on Thursday, May 7th. Benchmark upgraded shares of AMC Entertainment from a “hold” rating to a “buy” rating and set a $2.50 price objective for the company in a research note on Wednesday, May 6th. Wall Street Zen upgraded AMC Entertainment from a “strong sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of AMC Entertainment in a research report on Thursday, June 11th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $2.24.

AMC Entertainment Price Performance

The firm’s 50 day moving average is $1.77 and its two-hundred day moving average is $1.55. The firm has a market capitalization of $1.26 billion, a P/E ratio of -1.90 and a beta of 2.22.

AMC Entertainment (NYSE:AMC) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.32) by ($0.04). The business had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $979.19 million. The company’s quarterly revenue was up 21.2% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.58) earnings per share. Analysts anticipate that AMC Entertainment Holdings, Inc. will post -0.37 EPS for the current fiscal year.

Insider Activity

In other news, CEO Adam M. Aron bought 250,000 shares of the company’s stock in a transaction dated 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 acquisition, the chief executive officer owned 2,437,020 shares in the company, valued at $3,363,087.60. This trade represents a 11.43% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On AMC Entertainment

A number of institutional investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of AMC Entertainment by 21.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 240,255 shares of the company’s stock valued at $690,000 after buying an additional 41,860 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in AMC Entertainment by 30.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 710,181 shares of the company’s stock valued at $2,038,000 after acquiring an additional 164,740 shares during the period. JPMorgan Chase & Co. raised its stake in AMC Entertainment by 19.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,820,405 shares of the company’s stock valued at $5,643,000 after acquiring an additional 300,376 shares during the period. Prudential Financial Inc. lifted its holdings in AMC Entertainment by 89.6% during the 2nd quarter. Prudential Financial Inc. now owns 55,685 shares of the company’s stock valued at $173,000 after purchasing an additional 26,310 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its holdings in AMC Entertainment by 9.2% during the 2nd quarter. Hsbc Holdings PLC now owns 102,506 shares of the company’s stock valued at $315,000 after purchasing an additional 8,629 shares during the last quarter. Institutional investors and hedge funds own 28.80% of the company’s stock.

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.