AMC Stock Price: AMC Entertainment Holdings shares suffer as Citi keeps as a Sell

• AMC shares drop on Tuesday as Citi keeps a $2 target on AMC.
• AMC holder Wanda Group reducing its stake in AMC.
• AMC to open all cinemas in California by Friday.

Update March 16: Citi maintained its sell rating on AMC shares after Q4 results saying the shares are overvalued. Also, Wanda group, AMC's largest shareholder has reduced its stake from 23.8% to under 10% according to AMC filings with the SEC on March 12.

Update March 15: Shares in AMC continue to receive investor support as AMC announced it plans to open most of its California theatres by March 19. Shares in AMC are trading $13.92 up 25% on Monday.

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AMC operates cinema theatres globally and understandably has suffered as a result of the pandemic. AMC operates in the US and Europe with theatres in 44 US states and 13 European countries. 

AMC Stock news

AMC shares have benefited from the return of the mac, retail traders!. AMC was one of /wallstreetbets favourite stocks during January's Gamestop surge. AMC was usually the supporting act to GME but was no slouch itself. Now that Gamestop is back en-vogue others have woken from their slumbers such as AMC, KOSS and other meme stocks. 

On January 25 AMC "announced today that since December 14, 2020, it has successfully raised or signed commitment letters to receive $917 million of new equity and debt capital. This increased liquidity should allow the company to make it through this dark coronavirus-impacted winter". Adam Aron, AMC CEO and President, said, “Today, the sun is shining on AMC. After securing more than $1 billion of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917 million capital infusion to bolster and solidify our liquidity and financial position. This means that any talk of an imminent bankruptcy for AMC is completely off the table.”

This was the catalyst for the massive AMC rally and while it did die down for a bit AMC has rallied sharply along with the king of them all Gamestop, currently heading back to nearly $300!

AMC Results

AMC announced on Tuesday, March 2 that it will release Q4 2020 results after the market closes on Wednesday, March 10. Data from Refinitiv shows a loss of $3.61 per share is expected. AMC is expected to post a fall in revenue from $1.45 billion to $155.2 million for Q4 2020. 

Q4 results will obviously show the full effects of the covid-19 pandemic and it is more forward-looking statements that investors are likely to focus on. Recent news on the reopening of New York cinemas will be closely watched for attendance extrapolation into future revenue predictions. Commentary on reopening timelines, cash burn, etc will all be closely watched.

AMC will hold a conference call post the release at 1700 EST/ 2200 GMT.

Previous Updates

Update March 11: AMC shares opened higher on Thursday and are currently trading at $10.33, a gain of 5%. AMC shares had earlier traded as high as $11.30 in early trade during Thursday's pre-market. Investors remained positive on AMC despite Q4 results showing a huge drop in revenue. AMC gave a positive outlook on the post-earnings conference call. 

Update March 11: Shares in AMC shrugged off Q4 results showing the devasting effect of the pandemic on the cinema business and instead looked forward to theatre reopening. Q4 Earnings Per Share (EPS) was -$3.15 slightly ahead of estimates and revenue fell nearly 90% to $162.5 million, ahead of estimates for $142.4 million. On the conference call, AMC said the opening up of theatres and the release of movies such as Disney's Black Widow, Top Gun, and other delayed releases would push sales up for 2021 according to Reuters. CEO Adam Aron said "For all the talk of the steps we at AMC have taken to bolster our position, the real salvation of our company will be because of vaccination," "Our focus is no longer on survival, but now has turned instead to directing a surge in movie-going and on the recovery of AMC."

Shares in AMC are up 7% in Thursday's pre-market.

Update March 10: AMC Entertainment Holdings Inc (NYSE: AMC) has been jumping out of the gate, rising by some 13% to near $12 at the time of writing. Shares of the troubled cinema company are boosted by Alaska's opening of vaccines to the entire adult population, expectations for robust earnings and a rise in "meme-shares." Traders on Reddit have been boosting GameStop (NYSE: GME), AMC and other shares.

AMC shares are once again taking the meme ball and running as US equities powered higher on Tuesday. AMC shares closed up 13% at $10.50. Wednesday sees the momentum continuing during the pre-market session with AMC up 8% at $11.35.

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