tiprankstipranks
AMC Theatres Record Blockbuster Weekend on Reopening; Shares Soar 7.5%
Market News

AMC Theatres Record Blockbuster Weekend on Reopening; Shares Soar 7.5%

Shares of AMC Entertainment Holdings, Inc. (AMC) soared 7.5% on June 28 after the company recorded a blockbuster weekend from June 24 to June 27. AMC’s theatres in the U.S. witnessed a footfall of over 2 million, while it received over 500,000 viewers in Europe and the Middle East.

Don't Miss Our Christmas Offers:

AMC is proof of how the meme stock frenzy can make or break a company. The stock gained around 500% since May 2021 and has increased more than 2700% since the beginning of the year. (See AMC Entertainment Holdings stock chart on TipRanks)

AMC was forced to shut its theatres in March 2020 due to the pandemic, and since its reopening, the last weekend marked the busiest turnout in more than a year. AMC locations were six of the top 10 busiest theatres in the U.S.

AMC attributes its success to F9: The Fast Saga, which opened to an estimated $70 million in the U.S., as well as to other movies playing at its theatres worldwide. The total global box office for F9: The Fast Saga has exceeded $400 million.

Adam Aron, CEO & President of AMC Theatres, said, “The combination of widespread vaccination and the release of blockbuster movies is proving to be the magic formula for the return of moviegoing. We could not be more excited about this post-reopening record weekend and the coming slate of what look to be more blockbuster movies being released this summer and beyond.”

The last weekend rush might be the beginning of a storm, as movie buffs return to watch their favorite movies on the big screen.

Notably, the pandemic has shifted viewers’ preferences to online streaming services, as people have avoided crowded places. However, last week’s turnout might just be proof that the small screen cannot outlive the experience provided by theatres.

Wedbush analyst Alicia Reese reiterated a Hold rating on the stock on June 28, with a price target of $7.5, implying 87.9% downside potential from current levels.

In a report, Wedbush analyst Reese stated that the 2021 North American box office is trending down 41.1% year-to-date to $1.01 billion. Given the current release slate, the 2021 U.S. box office is projected to be up 129% over 2020 and down 58% from 2019.

The analyst stated that AMC has taken on additional debt during the pandemic and has adjusted leases across its footprint. Also, AMC expanded its share count considerably to cover costs during the pandemic.

Reese believes AMC’s share price no longer justifies its fundamentals and does not recommend buying or shorting of its shares, as the stock price is lifted by retail investors whose scope for holding the stock is unclear.

The stock has a Hold consensus rating based on 1 Buy, 4 Holds, and 3 Sells. The average analyst AMC price target of $3.30 implies a whopping downside potential of 94.3% from current levels.

Meanwhile, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AMC, with 17% of investors who hold portfolios on TipRanks increasing their exposure to AMC stock over the past 30 days.

Related News:
CarMax Delivers Blowout Q1 Earnings; Shares Jump 7%
Rockwell to Acquire Plex Systems in $2.22B Cash Deal
Synchronoss Technologies to Issue $100M Common Stock and $125M Senior Notes; Shares Skyrocket 21%

Go Ad-Free with Our App