Investors Buy Large Volume of Call Options on AMC Entertainment (NYSE:AMC)

AMC Entertainment Holdings, Inc. (NYSE:AMC) was the recipient of some unusual options trading on Monday. Stock traders purchased 202,004 call options on the company. This represents an increase of 108% compared to the average daily volume of 97,301 call options.

AMC Entertainment Trading Down 9.5%

Shares of AMC stock opened at $2.23 on Wednesday. The firm has a fifty day moving average price of $1.93 and a 200 day moving average price of $1.56. The company has a market cap of $1.99 billion, a P/E ratio of -2.08 and a beta of 2.08. AMC Entertainment has a 12 month low of $0.93 and a 12 month high of $3.55.

AMC Entertainment (NYSE:AMC) last posted its quarterly earnings results on Monday, July 20th. The company reported $0.14 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.17. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.50 billion. On average, equities analysts forecast that AMC Entertainment will post -0.37 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms have issued reports on AMC. Roth Capital set a $1.50 price target on AMC Entertainment in a research report on Tuesday, May 19th. Weiss Ratings downgraded AMC Entertainment from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday. Benchmark restated a “buy” rating and set a $3.00 target price (up from $2.50) on shares of AMC Entertainment in a research note on Tuesday. B. Riley Financial reaffirmed a “buy” rating on shares of AMC Entertainment in a report on Thursday, June 11th. Finally, Needham & Company LLC set a $3.50 price target on shares of AMC Entertainment in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $2.53.

Key Stories Impacting AMC Entertainment

Here are the key news stories impacting AMC Entertainment this week:

• Positive Sentiment: AMC reported record quarterly revenue of $1.60 billion and an adjusted profit of $0.14 per share, both ahead of Wall Street expectations, signaling that the box-office recovery is translating into better-than-expected results. Article Title
• Positive Sentiment: Attendance rose sharply, helped by a strong slate of summer films including “The Odyssey,” which boosted ticket sales, food and beverage spending, and adjusted EBITDA to a record level. Article Title
• Positive Sentiment: Management said AMC is now “within sight” of generating positive free cash flow for a full year, while also highlighting debt reduction and improved operating momentum, which could support a longer-term turnaround view. Article Title
• Neutral Sentiment: AMC was added to the Zacks Rank #1 (Strong Buy) list, which may bolster sentiment, but this is more of a ratings-driven signal than a direct business catalyst. Article Title
• Neutral Sentiment: After the big earnings-driven rally, one report noted the stock retreating as the initial excitement around earnings and “The Odyssey” cooled, suggesting some near-term consolidation. Article Title

Insider Transactions at AMC Entertainment

In related news, CEO Adam M. Aron bought 250,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average cost of $1.38 per share, with a total value of $345,000.00. Following the purchase, the chief executive officer directly owned 2,437,020 shares of the company’s stock, valued at $3,363,087.60. This trade represents a 11.43% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in AMC. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in AMC Entertainment by 21.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 240,255 shares of the company’s stock worth $690,000 after purchasing an additional 41,860 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in AMC Entertainment by 30.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 710,181 shares of the company’s stock valued at $2,038,000 after purchasing an additional 164,740 shares during the last quarter. JPMorgan Chase & Co. increased its stake in AMC Entertainment by 19.8% in the second quarter. JPMorgan Chase & Co. now owns 1,820,405 shares of the company’s stock valued at $5,643,000 after purchasing an additional 300,376 shares during the last quarter. Prudential Financial Inc. raised its holdings in AMC Entertainment by 89.6% during the second quarter. Prudential Financial Inc. now owns 55,685 shares of the company’s stock worth $173,000 after purchasing an additional 26,310 shares in the last quarter. Finally, Hsbc Holdings PLC raised its holdings in AMC Entertainment by 9.2% during the second quarter. Hsbc Holdings PLC now owns 102,506 shares of the company’s stock worth $315,000 after purchasing an additional 8,629 shares in the last quarter. Hedge funds and other institutional investors own 28.80% of the company’s stock.

About AMC Entertainment

AMC Entertainment Holdings, Inc operates as a leading movie exhibition company, specializing in the presentation of theatrical motion pictures across a network of multiplex cinemas. The company’s core business activities encompass ticket sales, concession and refreshment services, and the licensing of premium viewing formats. AMC offers a variety of auditorium experiences, including IMAX®, Dolby Cinema™, and Cinemark’s RealD 3D systems, designed to enhance audience engagement through superior sound, visual clarity, and seating comfort.

Originally founded in 1920 with its first theatre in Kansas City, AMC has evolved into one of the largest theater chains in the world.