AMC Entertainment (AMC) Stock - Crucial Stakeholder Meeting Today

At 11:00 AM CDT, on March 11, 2023, AMC Entertainment (AMC Stock) is to hold a Special Stakeholders Meeting
The meeting would decide on the Stock split motion and conversion of APE to AMC Shares.

AMC Entertainment (AMC Stock) is to hold special stakeholders meeting on March 14, 2023, at 11:00 AM CDT, to decide on crucial conversion. In this special meeting, the world’s biggest movie theater chain would decide on converting AMC Preferred Equity Units (APE) to AMC shares.

All eyes on AMC Stakeholders Meeting

A crucial 1-for-10 reverse stock split is in motion. AMC also proposes increasing the authorized AMC shares from 524.17 million to 550 million. The entertainment company also noted that the reverse split and the increase in authorized count proposal would have to be approved. This would facilitate the conversion of APE to AMC. Failure of any proposal would halt the conversion.

AMC Entertainment (AMC Stock) – A brief

Founded in 1920 and headquartered in Leawood, Kansas, it is the world’s leading movie theater chain with over 11,000 screens. AMC Entertainment Holdings Inc. went public in 2013, with Beijing-based Wanda Group emerging as the biggest shareholder.

Interestingly the company rules more than 30% of the global market share, with only 5% of screens. The food and beverages served in their theaters accounted for 28% of revenue in mid-2022. They own and operate multiple theaters across the United States and Europe, slowly expanding into the digital and streaming arena.

Analysts View Over AMC Stock Price:

When writing, AMC was trading at $5.46 with a slight jump of 1.49%. Previous close and open were at $5.38 and $5.44, respectively, and the fifty-two-week change was negative 62.29%. Short interest seems healthy, with 24.37% of shares sold short, and analysts have placed the price target at $3.78 with a downside of 42.9%.

The company’s revenue dropped by 15.43% to $990.90 million; their operating expenses were 166.90 million after dropping 19.72%. Net income was negative $287.70 million after dropping by 114.06%; net profit margin also dropped by 153.10% to negative $29.03. Earnings Per Share (EPS) suffered by 27.27% to $0.24, while the profit margin was negative by 24.89%.

Operating margin corrected by 9.88%, quarterly revenue growth was negative 15.40%, and revenue per share was $3.73. Positive earnings were reported on February 28, 2023, where estimated revenue was $977.645 million, while AMC managed to report revenue of $1.026 billion, with a surprise of 48.155 million and up by 4.93%.

AMC Entertainment (AMC) – Technical Indications

The chart does not provide a clear picture of the movement ahead. With the moving average moving sideways, it is expected to consolidate between S1 at $4.52 and R1 at $8.56 before deciding further. As the current point is much closer to its yearly low, it is not expected to go south further unless something bad happens.

If the current rate gives the moving average a clean break and supporting candles appear, it might start moving towards R1, and good market sentiments might never take it to R2.

Disclaimer:

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing