Movie theater chain AMC Entertainment (AMC) was up on Monday after the extended Thanksgiving weekend brought strong box office performances from several major films. Leading this was Moana 2 with $221 million domestically, while Wicked pulled in $80 million, and Gladiator II contributed $30.7 million to the $420 million domestic box office weekend total.
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It comes as no surprise that AMC stock is rising alongside this news. That $420 million box office weekend broke the previous Thanksgiving record of $315.6 million set in 2018. A large part of that is thanks to Moana 2, which also blew past the prior Thanksgiving weekend box office record of $125 million set by Frozen II in 2019.
The Lineup Was a Formula for Success
It makes sense that this weekend went so well for AMC Entertainment and the movie theater industry. There was a little bit for everyone, with Moana 2 targeting children, Wicked targeting women, and Gladiator II targeting men. Additionally, two of these were sequels, and one was an adaptation of a popular musical and novel. All of these factors helped contribute to the success of the films and the strong Thanksgiving weekend performance.
Alongside today’s box office performance news comes a 1.41% increase for AMC shares. Even so, investors will note that the shares are still down 17.48% year-to-date while also having fallen 32.58% over the past 12 months.
Is AMC Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMC Entertainment is Moderate Sell based on four Hold and three Sell ratings over the last three months. With that comes an average AMC price target of $4.30, a high of $6, and a low of $3.20. That represents a potential downside of 14.51% for AMC shares.
