AMC Entertainment Holdings Inc (NYSE:AMC) shares are down on Thursday as the stock hits a new all-time low of $1.48. This decline comes despite the company’s recent operational success driven by the release of Avatar: Fire and Ash, which has grossed $483 million worldwide, indicating a disconnect between market sentiment and performance.
- AMC Entertainment stock is testing lower boundaries. Why is AMC stock at lows?
Why Market Sentiment Is Missing The Mark
AMC reported its strongest pre-Christmas weekend since 2021, drawing over 4 million guests and generating $88 million domestically. Despite this success, Wall Street remains fixated on long-term balance sheet concerns, particularly fears of future dilution due to an amended note agreement allowing for up to $150 million in stock offerings beginning in February 2026.
The company recently sold the majority of its stake in Hycroft Mining Holding Corporation (NASDAQ:HYMC) for $24.1 million to reinvest in its core exhibition business. Meanwhile, billionaire Robert Citrone of Discovery Capital Management has taken a contrarian position, acquiring approximately 32.75 million shares, betting that the distressed equity is undervalued relative to its box office recovery.
The broader market is meanwhile experiencing mixed performance Thursday afternoon, with the S&P 500 up 0.07% and the Nasdaq-100 down 0.59%.
The Technical Indicators That Spell Trouble
AMC is currently trading 16.6% below its 20-day simple moving average (SMA) and 30.6% below its 50-day SMA, indicating significant bearish pressure. Over the past 12 months, shares have decreased by 62.08%, and they are positioned closer to their 52-week lows than highs.
The RSI is at 20.99, which is considered oversold, suggesting that the stock may be due for a bounce. Meanwhile, the MACD is below its signal line, reinforcing the bearish outlook on the stock.
The combination of an oversold RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $2.00
- Key Support: $1.50
How AMC’s Earnings Could Surprise Investors
Investors are looking ahead to the next earnings report on February 24.
- EPS Estimate: Loss of 5 cents (Up from a loss of 18 cents YoY)
- Revenue Estimate: $1.41 billion (Up from $1.31 billion YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $5.41. Recent analyst moves include:
- Citigroup: Sell (Lowered Target to $2.30)
- Citigroup: Sell (Raised Target to $2.70)
- Wedbush: Upgraded to Outperform (Raised Target to $4.00)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for AMC, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bearish (Score: 4/100) — The stock is underperforming the broader market.
- Quality: Weak (Score: 22/100) — The balance sheet shows significant concerns.
- Value: Risk (Score: 10/100) — Trading at a steep premium relative to peers.
The Verdict: AMC’s Benzinga Edge signal reveals a classic ‘distressed’ setup. The low scores across Momentum and Quality indicate significant challenges ahead, suggesting investors should be cautious in their approach.
Price Action
AMC Price Action: AMC Entertainment shares were down 1.32% at $1.50 at the time of publication on Thursday, according to Benzinga Pro data.
Read Next: Why Are Investors Paying Attention To AMC Stock?
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