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Heavy Debt, Bearish Analysts Deny AMC Entertainment Stock Outlook

Pessimism all around AMC Entertainment (United States: AMC) Inventory is rising.analysts say most of the option’s owners seem to be against it. city is very pessimistic, with US cinema attendance still well below 2019 levels. Oh, AMC is in huge debt.

last month, Jeffries The firm’s Prime Brokerage division will no longer allow short sales to take place on AMC, telling clients that bloomberg news report.

it happened a few days later The company has completed its public offeringcapitalized on retail investor frenzy to push the stock to a record closing price of $62.55 per share and raised $587.4 million in additional equity capital.

According to a statement, the theater operator told investors, “Our current market value reflects market and trading trends that are unrelated to our underlying business, macro and industry fundamentals. We don’t know how long these trends will last,” he warned.

The short interest rate is close to 978%, according to the data Edited by Fintel. Its Gamma Squeeze score ranks AMC stock 519 out of his 38,213 stocks analyzed. This new experimental index is the result of a multi-factor quantitative model that identifies companies at the highest risk of experiencing a gamma squeeze.

The short interest rate is 122.09 million shares, or 23.6% of free float, with a coverage period of 6.1 days.

And what about that huge amount of debt? AMC had $9.66 billion in debt at the end of the day in the first quarter, and Low current ratio oAn f of 0.43 indicates that debt service may become difficult in the medium term.

Very bearish put/call ratio

Most of AMC’s put/call ratio extremely negative, because the overall put/call ratio for the name is 1.69. The put/call ratios for options expiring on July 14th, July 21st and July 28th are 1.45, 1.61 and 7.28 respectively. The put/call ratios for AMC options expiring on Aug 4, Aug 11 and Aug 18 are 5.44, 2.24 and 3.88 respectively. It’s hard to imagine that a stock’s outlook could be much worse than these numbers in a put vs. call comparison.

put/call ratio of options won Options buyers’ sentiment on AMC shares has not recovered much recently, as stocks traded at 1.60 or 1.69 on July 6th, July 7th and July 10th.

Low attendance at cinemas

theater ticket revenue in america almost rose 20% YoY in the first half of 2023. However, cinema ticket revenues remain down 21% from the first half of 2019 levels. And it’s worth remembering that in 2019, streaming was already so popular that movie theaters weren’t such a great business. It was beginning to take a heavy toll on theater revenues and profits. In fact, the emergence of the term “Netflix and Chill,” for example, predates 2019.

But streaming is certainly a much more pervasive phenomenon now than it was in 2019. In fact, streaming is so popular and lucrative right now that some major filmmakers have released works like: their movies directly Bypass the theater entirely and access that media directly. That’s probably the main reason why “57 movies were released in over 2,000 theaters” in the first half of 2019. CNBC reportMeanwhile, the comparable figure for the same period in 2023 was just 45.

Of course, if AMC shows a significantly lower number of movies, it tends to generate significantly lower revenues and significantly increase its losses.

Bearish Note Yelling “Sell”

July 3, City suggested that AMC’s stock could fall in the next month. Analysts in the country expect AMC to lose a lawsuit filed by one of its shareholders who wanted to prevent the company from converting its preferred stock into common stock. The conversion will put “downward pressure” on AMC shares, the bank warned.

Citi has rated AMC stock as Sell and maintained its price target at $1.65. The consensus compiled by Fintel is that the stock will trade at $2.31 a share, more than 47% below current levels. Tracking recommendation trends shows consistency over the past 12 months, with 5 analysts advising clients to ‘hold’, 7 to ‘sell’, and since March, 3 A person is hammering out a “strong sell” of a stock.

This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
Pessimism all around AMC Entertainment (United States: AMC) Inventory is rising.analysts say most of the option’s owners seem to be against it. city is very pessimistic, with US cinema attendance still well below 2019 levels. Oh, AMC is in huge debt.last month, Jeffries The firm’s Prime Brokerage division will no longer allow short sales to take place on AMC, telling clients that bloomberg news report.

it happened a few days later The company has completed its public offeringcapitalized on retail investor frenzy to push the stock to a record closing price of $62.55 per share and raised $587.4 million in additional equity capital. According to a statement, the theater operator told investors, “Our current market value reflects market and trading trends that are unrelated to our underlying business, macro and industry fundamentals. We don’t know how long these trends will last,” he warned.The short interest rate is close to 978%, according to the data Edited by Fintel. Its Gamma Squeeze score ranks AMC stock 519 out of his 38,213 stocks analyzed. This new experimental index is the result of a multi-factor quantitative model that identifies companies at the highest risk of experiencing a gamma squeeze.The short interest rate is 122.09 million shares, or 23.6% of free float, with a coverage period of 6.1 days.And what about that huge amount of debt? AMC had $9.66 billion in debt at the end of the day in the first quarter, and Low current ratio oAn f of 0.43 indicates that debt service may become difficult in the medium term.

Very bearish put/call ratioMost of AMC’s put/call ratio extremely negative, because the overall put/call ratio for the name is 1.69. The put/call ratios for options expiring on July 14th, July 21st and July 28th are 1.45, 1.61 and 7.28 respectively. The put/call ratios for AMC options expiring on Aug 4, Aug 11 and Aug 18 are 5.44, 2.24 and 3.88 respectively. It’s hard to imagine that a stock’s outlook could be much worse than these numbers in a put vs. call comparison. put/call ratio of options won Options buyers’ sentiment on AMC shares has not recovered much recently, as stocks traded at 1.60 or 1.69 on July 6th, July 7th and July 10th. Low attendance at cinemastheater ticket revenue in america almost rose 20% YoY in the first half of 2023. However, cinema ticket revenues remain down 21% from the first half of 2019 levels. And it’s worth remembering that in 2019, streaming was already so popular that movie theaters weren’t such a great business. It was beginning to take a heavy toll on theater revenues and profits. In fact, the emergence of the term “Netflix and Chill,” for example, predates 2019. But streaming is certainly a much more pervasive phenomenon now than it was in 2019. In fact, streaming is so popular and lucrative right now that some major filmmakers have released works like: their movies directly Bypass the theater entirely and access that media directly. That’s probably the main reason why “57 movies were released in over 2,000 theaters” in the first half of 2019. CNBC reportMeanwhile, the comparable figure for the same period in 2023 was just 45.Of course, if AMC shows a significantly lower number of movies, it tends to generate significantly lower revenues and significantly increase its losses.

Bearish Note Yelling “Sell”July 3, City suggested that AMC’s stock could fall in the next month. Analysts in the country expect AMC to lose a lawsuit filed by one of its shareholders who wanted to prevent the company from converting its preferred stock into common stock. The conversion will put “downward pressure” on AMC shares, the bank warned.Citi has rated AMC stock as Sell and maintained its price target at $1.65. The consensus compiled by Fintel is that the stock will trade at $2.31 a share, more than 47% below current levels. Tracking recommendation trends shows consistency over the past 12 months, with 5 analysts advising clients to ‘hold’, 7 to ‘sell’, and since March, 3 A person is hammering out a “strong sell” of a stock.
This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/heavy-debt-bearish-analysts-cloud-outlook-for-amc-entertainment-stock Heavy Debt, Bearish Analysts Deny AMC Entertainment Stock Outlook

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