Going to the movies is fun and exciting again.But can it match the mind-bending action of AMC Entertainment ( AMC )?
X Starting the year 2021 at 2 a share, AMC stock skyrocketed more than 36-fold to an all-time high of 72.62 on June 2 that same year.
Then came 2022, a brutal year for meme stocks .
AMC stock started the year at 27.20 and ended at 4.07, a miserable loss of 85%.Since then, AMC’s drama in the stock market today has continued.
The current year initially saw a much better start for AMC.But after more than doubling from its year-end close of 4.07 during the first two months of 2023, shares slid again after the company said on March 14 that 87% of voting shareholders approved a plan to conduct a 1-for-10 reverse stock split.
That split has yet to take place.
AMC is struggling to overcome a slump after recently posting a fourth straight weekly decline.Closing at 4.50 on June 1, shares registered their lowest close since April 5.On Tuesday, following the Juneteenth holiday weekend, AMC stock fell 2.3% to 4.59.
Meanwhile, the relative strength line , which graphs a stock or ETF’s day-to-day performance vs.
the S&P 500, trended lower throughout May.Plus, it’s still not clear if the RS line has bottomed out for now.
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AMC shares trade 12.7% higher year to date, mildly underperforming a 14.3% rise by the S&P 500.
AMC stock has a market value of $2.4 billion and 519.2 million shares outstanding, according to MarketSmith .The float (freely traded shares) stands at 514 million.
The first half of May proved strong.
On May 4, AMC made its highest close since March 7.At one point, the small cap’s year-to-date gain reached 44%.
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A New Slump After Q1 Report But AMC stock let those gains slip away again.Notice too how it slumped below the 50-day moving average again.
Unfortunately, that bespeaks bearish price action as well.
So, is AMC stock a buy now? Or is it a sell?
This story examines fundamental, technical and fund ownership factors to determine if the Leawood, Kan., company with 950 theaters and 10,500 screens scores a good probability of making money for stock traders.
In late April, AMC’s recent rise back above this key technical level had signaled a potentially bullish shift in the balance of demand vs.supply.After all, leading growth stocks tend to rally above the 50-day moving average, as well as pull the 50-day line higher.
In early May, the stock reported a net loss of 13 cents in the first quarter of 2023.A year ago, AMC suffered a net loss of 26 cents a share.Revenue jumped 21% to $954.4 million.The company saw food and beverage spending per patron of $6.90 globally and $7.99 in the U.S.
Sales Continue To Recover CEO Adam Aron noted the first quarter results as the strongest for a first quarter of the year in at least four years.
“The recovery in the European box office easily surpassed 2022 by some 29%, totaling more than $1.7 billion,” Aron noted.He added “The Super Mario Brothers Movie” has helped the second quarter get off to a marvelous start with ticket sales surpassing $1 billion worldwide.
In a MarketWatch story on May 9, Macquarie Research analyst Chad Beynon noted a “road to recovery getting better with box-office strength.”
“We expect AMC’s business to grow with the market and benefit from strong strong flow-through given significant fixed costs in the business,” Beynon added.
According to its Q1 news release, AMC also saw a $2.3 million fall in the estimated fair value of its investment in shares of gold mining company Hycroft Mining ( HYMC ).
The stock trades at 37 cents.
On April 4, shares tanked 23% to 3.91 in heavy trading following news that the company.
