Can it Reverse its Three-day Consecutive Slump?

AMC Entertainment Holdings Inc. (AMC Stock) price has been dropping for the past three days, around 23% since the earnings report release. At press time, AMC is trading at $4.70, dropping 3.69% in the last 24 hours. The NASDAQ Composite Index gained 1.71% to 12,689.09 while the Dow Jones Industrial Average fell by 0.11% to 32,764.65. Also, the company’s Investor Connect Program just hit 1 Million members.

AMC Entertainment Holdings – Financial Analysis

AMC stock is underperforming when compared to its competitors. Cinemark Holdings Inc (CNK) trading at $16.81 fell by 0.94%, and Marcus Corp. (MCS) trading at $15.68 dropped by 2.06%. AMC stumbled by 3.69%, scoring 24 for its short-term technicals. The stock was trading somewhat bearish compared to last month.

AMC Entertainment Holdings Inc.’s much-hyped Investor Connect program just reached 1 Million members, announced its CEO, Adam Aron. The program was launched in 2021 and allows AMC holders to self-identify through the company’s website and receive special offers and updates.

The movie theatre chain recently released its Q1 2023 earnings report on May 5, 2023. Aron seems confident that the company will benefit significantly from upcoming movies like Mission Impossible: Dead Reckoning Part-1, Oppenheimer, etc., slated for release in 2023.

AMC also agreed to settle a shareholder lawsuit regarding the conversion of the AMC Preferred Equity unit. The units were converted into common stock. AMC’s share price gained around 56% YTD and has dropped about 45% from the 2023 high.

At press time, AMC stock is trading at $4.70 with a drop of 3.69%; previous close and open were at $4.88 and $4.93, respectively. The 52-week change was a decrease of 67.43%. With an average volume of 31.24 Million shares, the market cap stays strong at $3.92 Billion. Analysts placed the price target at $3.90 with a 31.5% upside.

AMC Stock Price: Can it Reverse its Three-day Consecutive Slump? — Source: Market Beat; AMC

The trailing twelve-month (ttm) revenue is $4.08 Billion, while concerning March 2023; data revenue jumped by 21.47% with a YoY of $954.40 Million. The revenue per share is $7.86, and the quarterly revenue growth is 21.50%. Similarly, operating expenses hiked by 8.67% to $183.00 Million, while the operating margin dropped by 8.05%, and gross profit is $290.5 Million.

Basic Earnings per share is minus $0.89, while EBITDA stands at $62.5 Million, and the Price to sales ratio is 1.64. Total cash is $495.6 Million, while debt is $9.66 Billion. The last earnings were announced on May 5, 2023, with reported revenue of $954.4 Million, estimated at $938.201 Million. This brings the surprise to $16.199 Million with a hike of 1.73%.

AMC Entertainment Holdings Inc. – Candle Exploration

Despite a positive earnings report, AMC’s share price dropped noticeably and seemed to be moving close to its 52-week low. The southbound trajectory of EMA gives weak signals, and the RSI of 46.57 indicates it’s in neutral territory. Hence, a clear path can only be presumed for AMC price action.

AMC price dropping below its low is unlikely, but stopping the fall could be tedious if it does. If the price rallies, it shall first fight immediate resistance, and post that, it shall consolidate before entering the supply zone. Or, if it bounces back, it shall consolidate above the 52-week low.

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