AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading higher Monday afternoon, despite a lack of company specific news for the session. The stock is rebounding after hitting a new all-time low last week, as the company works through a tough market environment despite some recent operational wins. Here’s what investors need to know.
- AMC Entertainment stock is charging ahead with explosive momentum. What’s driving AMC stock higher?
Is AMC’s Box Office Boom Sustainable?
Shares of AMC have been volatile in recent weeks, with the box office reportedly booming, particularly following the release of Avatar: Fire and Ash, which grossed $483 million worldwide. The company also reported its strongest pre-Christmas weekend since 2021, attracting over 4 million guests and generating $88 million domestically.
Despite this success, Wall Street remains focused on long-term balance sheet concerns, especially fears of future dilution due to an amended note agreement allowing for up to $150 million in stock offerings beginning in February 2026, which has pressured shares in recent weeks.
Additionally, 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.
Is This The Right Time To Buy AMC?
The stock is currently trading 4.2% below its 20-day simple moving average (SMA) and 33.5% below its 100-day SMA, demonstrating significant bearish pressure. Shares have decreased by 53.28% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
Also Read: AMC Took A Gamble Everyone Questioned — And Just Cashed Out $7.9 Million Profit
The RSI is at 38.25, which is considered neutral territory, while MACD is above the signal line, indicating a bullish signal. The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $2.00
- Key Support: $1.50
The Mixed Signals From Analysts And Earnings Estimates
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: $1.38 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)
Price Action
AMC Price Action: AMC Entertainment shares were up 6.71% at $1.75 at the time of publication on Monday, according to Benzinga Pro data.
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