AMC Entertainment Holdings Inc. (NYSE:AMC) is certainly generating a lot of buzz recently.
The company’s shares have risen more than 19 per cent year-to-date — from US$3.93 as of Jan. 3’s open to $4.69 as of Friday — and the stock reached a year-to-date high of $7.14 on Feb. 28.
This week, however, AMC Entertainment has dipped slightly by 1.99 per cent and has posted its fourth consecutive week of losses.
With that said, what’s been happening with the entertainment conglomerate, and why is its stock fluctuating?
Recent AMC 2023 highlights
Perhaps one catapult is the release of AMC Entertainment Holdings Q1 2023 results in May, highlighting revenue growth of 21.5 percent compared with Q1 2022 to $954.4 million.
Net loss also improved by $101.9 million compared with $235.5 million.
“Our results for the first quarter of 2023 represent AMC’s strongest first quarter in four full years. We kicked off 2023 by continuing on our positive glide path to recovery, with more than a 21% growth in total revenues and a $69 million improvement in adjusted EBITDA compared to the previous year,” Adam Aron, CEO of AMC Entertainment, said in a statement.
Aron added that the first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of positive adjusted EBITDA since March 2020.
“This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to excellence and innovation as our guests enjoy a superb movie-going experience at our theatres,” he said.
Also in May, AMC Entertainment launched the AMC Entertainment Visa Card in the United States, making it the first credit card of its kind in the country.
Through the credit card, users can earn AMC Stubs points on all purchases at approximately 600 AMC theatres across the country, on groceries and gas, and all other purchases using the card.
“The AMC Entertainment Visa Card is a perfect extension of our AMC Stubs program, not only serving to remind our guests about their passion for moviegoing each time they take the card out of their wallet, but also rewarding Stubs Members for purchases at 44 million Visa-accepting merchant locations in more than 200 countries and territories worldwide,” Eliot Hamlisch, executive vice president and chief marketing officer at AMC, said in a statement.
AMC stock price forecast
Based on six analysts from Business CNN, the 12-month forecast for AMC Entertainment Holdings has a median target of $1.83, a high estimate of $4.50 and a low of $0.50. Overall, the median estimate indicates a 61.17 per cent decrease from AMC Holdings’ last closing price of $4.70.
According to eight investment analysts polled, the consensus is to sell the stock, which has been the standing opinion since March.
Other analysts over at Coin Price Forecast, however, project a year-end forecast for AMC Entertainment to hit $5 and $8 by the end of 2024. Moving into the next couple of years, analysts predict AMC Entertainment could reach $12 by 2025 and $17 by 2027.
About AMC Entertainment Holdings
Formed in 1920 by Maurice Edward, AMC Entertainment Holdings (NYSE:AMC) has, over the past century, become the largest movie exhibition company in the United States and around the world with 950 theatres and more than 10,500 across the globe, respectively.
Founded in Kansas City, Mo., and now headquartered out of Leawood, Kansas, the entertainment company is well known for its brands including AMC, AMC Classic and AMC DINE-IN.
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