Taking the lead: AMC Entertainment Holdings Inc. (AMC)

With 30.96 million shares changed hands, the volume of the stock remained heavier than its average volume of 28.18 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $5.80 whereas the lowest price it dropped to was $5.45. The 52-week range on AMC shows that it touched its highest point at $21.09 and its lowest point at $3.77 during that stretch. It currently has a 1-year price target of $2.39. Beta for the stock currently stands at 1.93.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AMC was up-trending over the past week, with a rise of 9.96%, but this was up by 12.88% over a month. Three-month performance dropped to -9.66% while six-month performance fell -47.14%. The stock lost -50.95% in the past year, while it has gained 35.63% so far this year. A look at the trailing 12-month EPS for AMC yields -1.37 with Next year EPS estimates of -0.41. For the next quarter, that number is -0.17. This implies an EPS growth rate of 93.20% for this year and 66.40% for next year.

Float and Shares Shorts:

At present, 516.82 million AMC shares are outstanding with a float of 515.28 million shares on hand for trading. On Oct 13, 2022, short shares totaled 104.36 million, which was 10.10% higher than short shares on Sep 14, 2022. In addition to Mr. Adam M. Aron as the firm’s Chairman, Pres & CEO, Mr. Sean D. Goodman serves as its Exec. VP, CFO & Treasurer.

Institutional Ownership:

Through their ownership of 28.49% of AMC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.82% of AMC, in contrast to 14.98% held by mutual funds. Shares owned by individuals account for 11.51%. As the largest shareholder in AMC with 9.33% of the stake, The Vanguard Group, Inc. holds 48,238,064 shares worth 48,238,064. A second-largest stockholder of AMC, BlackRock Fund Advisors, holds 18,435,216 shares, controlling over 3.57% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in AMC, holding 10,304,183 shares or 1.99% stake. With a 3.13% stake in AMC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 16,169,715 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.65% of AMC stock, is the second-largest Mutual Fund holder. It holds 13,700,659 shares valued at 55.76 million. Vanguard Small Cap Value Index Fu holds 1.86% of the stake in AMC, owning 9,586,479 shares worth 39.02 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMC since 7 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AMC analysts setting a high price target of $4.50 and a low target of $0.50, the average target price over the next 12 months is $2.39. Based on these targets, AMC could drop -18.48% to reach the target high and fall by -90.94% to reach the target low. Reaching the average price target will result in a decline of -56.7% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AMC will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$0.76 being high and -$1.20 being low. For AMC, this leads to a yearly average estimate of -$1.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. AMC Entertainment Holdings Inc. surprised analysts by $0.03 when it reported -$0.20 EPS against a consensus estimate of -$0.23. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.09 and the low estimate is -$0.24. The average estimate for the next quarter is thus -$0.16.

Summary of Insider Activity:

Insiders traded AMC stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 33,334 shares were bought while 15,017 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 2,057,774 while 1,401,286 shares were sold.

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