Insider Concerns Hints At Entry Point in AMC Entertainment Holdings, Inc. (AMC)

On December 03, 2019, AMC Entertainment Holdings, Inc. (NYSE:AMC) shares lost -4.61% or -0.4 points to close at $8.27 with a heavy trading volume of 3.652 million shares. It opened the trading session at $8.57, the shares rose to $8.5827 and dropped to $8.21, the range by which the price of stock traded the whole day. The company now has a market cap of $885 million and currently has 107.03 million outstanding shares. AMC Entertainment Holdings, Inc. (AMC) stock has plunged -14.03 percent of market value in 21 trading days.

AMC stock’s trailing 3-year beta is 0.77, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.21 share in the trailing 52 weeks. The stock’s value fallen -32.65 percent year to date (YTD) compared to a decline of -39.41 percent in 52 week’s period. The firm’s shares are still trading -51.54 percent below its 1-year high of $17.07 and 10.71 percent up from 52-week low of $7.47. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

AMC Entertainment Holdings, Inc. (AMC) is most likely going to rise 74.37 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $21-month high price target. This represents a whopping 153.93 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $14.5, which means a return possibility of 75.33 percent in comparison with the closing price of the stock of $8.27 on December 03. The lowest price set for the stock is $11 — just above 33.01 percent from AMC share price now.

Past records have indicated that shares in AMC Entertainment Holdings, Inc. rose on 13 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AMC’s Q4 earnings on February 18. Analysts are predicting revenue to climb 6.7 percent to $1.51B in the financial fourth quarter, while EPS will soar by about -13.95 percent to $0.37 per share. In the last quarter, it earnings of $0.17 per share came worse than the $0.36619, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.41B, topping the $1.4B analysts had expected. Earnings are seen to rise by 117.8 percent this year, 51.9 percent in the coming year and the trend continues by 28.13 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at AMC Entertainment Holdings, Inc. (NYSE:AMC) and observe the pattern. The earliest insider trade happened on 05/15/2019. Stachowiak Raymond C gathered a total of 160.56 thousand shares of the firm at average share price of $2.73. The total amount for the purchase was set at $438.33 thousand. On completing this exchange, the Director, 10% Owner account balance was 887.28 thousand shares. The stock grew 217.58 percent from that insider purchase. On 03/01/2019, MCDONALD JOHN D, EVP, US OPERATIONS, did a sale of 7.5 thousand shares at a price of $15.75 per share. This got rid of 118.13 thousand shares from the insider’s fortune and the stock experienced a -44.95 percent retreat in price since the news became public. This exchange saw 54.75 thousand shares get out from the EVP, US OPERATIONS account.

On 10/15/2018, EVP, US OPERATIONS MCDONALD JOHN D recorded a sale transaction valued at $140.25 thousand. The sale at $18.7 a share has eliminated 7.5 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -53.64 percent decrease since the transaction reporting date. The company insider is left with 49.46 thousand shares remaining in the account. MCDONALD JOHN D, who works as EVP, US OPERATIONS at the company, performed a sale of 17.5 thousand shares in a transaction worth $327.25 thousand. The disposal recorded on 10/15/2018 was priced at $18.7 per share. The stock price plunged -53.64 percent since the transaction. MCDONALD JOHN D currently holds a stake of 39.46 thousand in AMC stock which is worth $326.35 thousand after the insider selling.

The stock is lingering around the initial support level of $8.13. After this, the following support is at the zone of $7.98. Up until the time the AMC stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 42.47 on the daily chart, and this may be a cause for concern. In case the price goes below $7.98 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $8.5 level may cause a pull-back move approaching $8.73 mark.

The industry AMC deals with has an average P/E of 18.4. Its P/B ratio is standing at 0.7X compared to the 3.4 industry average. It is additionally sporting a 0.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.5. AMC Entertainment Holdings, Inc. has a 63.7% gross profit margin, with its operating margin around 3.3%. Alongside this, the company’s net profit margin currently stands at 0.6%.