The stock price then retreated in value to close down $5.18, or around 26 percent, at $14.42 on the day as Wall Street investors look ahead to the APEs-to-stock conversion. As part of the equity distribution agreement approved ig broker review by the courts, AMC can sell about 390 million new common stock shares worth about $3.4 billion. AMC has also completed a reverse stock split that left shareholders with one share for every ten they previously held.
The plan was initially shared back in March, quickly drawing the ire of AMC shareholders and sparking litigation. The mega exhibitor saw its stock price fall ahead of plans to convert its preferred equity units, or “APE” shares, to common stock on Aug. 25 in a bid to reduce its overall debt load. Converting AMC’s APE shares after shrinking the number of shares outstanding aims to allow the exhibition giant to offer new shares for sale to strengthen its balance sheet.
- If I follow their suggestions now, we’ll run out of cash,” Aron argued.
- It’s all fun and games, but AMC has to get serious about fixing its free cash flow or risk bankruptcy.
- 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.
- AMC reported earnings of 1 cent per share on revenue of $1.35 billion, far surpassing analyst expectations of a loss of 4 cents per share on $1.29 billion revenue.
View analysts price targets for AMC or view top-rated stocks among Wall Street analysts. On Aug. 24, trading in AMC stock reflected the 1-for-10 reverse stock split. That is, a holder of 10 shares of AMC now owns just one share, but the share price got multiplied by 10. But shares likely plunged on the dilution effect from the share conversion.
What were AMC’s latest earnings like?
As for AMC stock, IBD’s relative strength line, which graphs a stock or ETF’s day-to-day performance vs. the S&P 500, has plunged since Aug. 14. This means AMC has sharply underperformed the S&P 500, especially since mid-August. “My good news on this Easter Sunday is that in March, the domestic industry box office finally turned upwards,” AMC CEO Adam Aron said in a tweet on X. AMC Entertainment announced that the “Taylor Swift – The Eras Tour” concert film officially became the highest grossing concert and documentary film in box office history. Wednesday’s drop was the biggest one-day sell-off AMC stock has seen since February 2021.
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Aron added that the firm also notched positive adjusted EBITDA in each quarter of the full year for the first time since pre-pandemic 2019. trade99 review Move forward to the summer of 2023, particularly in July that year. AMC shareholders had good reason to look forward to another rebound.
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The company is scheduled to release its next quarterly earnings announcement on Friday, May 3rd 2024. To get this ideal entry in a cup without handle, simply take the cup’s left-side high. Still, with gains of as much as 501% in just two weeks, it made sense to lock in at least partial profits. The 33% gain in October was pleasant to see, but AMC stock gave back all of that rebound in November. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
In January 2021, WallStreetBets chat-room traders on Reddit joined in unison in buying shares and bullish call options in AMC stock. They did the same in a band of other companies that had been heavily sold short and struggling. For now, analysts on consensus see the company posting a net loss of $1.59 a share this year and 67 cents in 2025. AMC posted a full-year adjusted net loss of $6.95 a share in 2022 and lost $1.59 in 2023. Going beyond the fundamentals, growth investors benefit in a big way if they understand how well a stock performs vs. a key benchmark.
AMC Entertainment shares reverse split on Thursday, August 24th 2023. The number of shares owned by shareholders was adjusted after the market closes on Wednesday, August 23rd 2023. An investor that had 100 shares of stock prior to the reverse split would have 10 shares coinspot review after the split. 5 analysts have issued 12 month price objectives for AMC Entertainment’s stock. On average, they predict the company’s share price to reach $6.35 in the next twelve months. This suggests a possible upside of 111.0% from the stock’s current price.
AMC Entertainment posted a third-quarter net loss of 9 cents per share amid a healthy 45% rise in sales to $1.41 billion. According to Yahoo Finance, analysts on consensus expected a net loss of 27 cents and $1.23 billion in sales. After the company reported third-quarter results on Nov. 8, shares dropped more than 25% for the week in accelerating turnover. AMC stock started that year at 27.20 (before the reverse split) and ended at 4.07, a miserable loss of 85%. The sale could represent as much as 7.7% of the 519.2 million shares outstanding.
