AMC Entertainment (NYSE:AMC) Share Price Crosses Below 200 Day Moving Average - Should You Sell?

AMC Entertainment Holdings, Inc. (NYSE:AMC) saw its share price fall below the critical 200-day moving average during trading on Friday. The stock has a 200-day moving average of $4.47, and it traded as low as $3.08. At the end of the day, AMC Entertainment shares were priced at $3.12, with a trading volume of 8,548,084 shares.

Analyst Ratings

Various analysts have provided insights into AMC’s performance recently. For example, B. Riley reduced their price target for AMC Entertainment from $8.00 to $6.00 and assigned a "neutral" rating in their report published on Thursday, November 7th. Additionally, StockNews.com updated their rating for AMC Entertainment to "sell" as of Tuesday, November 12th. Macquarie also maintained an "underperform" rating and set a price target of $4.00 in a research note released on Wednesday, November 13th. Lastly, Benchmark confirmed a "hold" rating in a report issued on November 7th. Currently, four investment analysts have labeled the stock with a sell rating while three provided a hold rating. According to MarketBeat data, the overall consensus rating stands at "Reduce" with an average target price of $5.44.

Recent Stock Performance

AMC Entertainment has a market capitalization of approximately $1.17 billion. The stock is recorded with a price-to-earnings ratio of -1.93 and a beta of 1.92, indicating significant market volatility. The stock’s 50-day moving average is $4.05, contrasting with the recently noted 200-day moving average of $4.47. The company announced its quarterly earnings results on November 6th, where it reported an earnings per share (EPS) of ($0.04), which was better than the expected ($0.07) by $0.03. The revenue recorded for the quarter stood at $1.35 billion, surpassing the analyst's consensus estimate of $1.33 billion. However, it's worth noting that this revenue reflects a 4.1% decrease compared to the same period last year. Analysts predict an EPS of -1.41 for the current year.

Institutional Investments

Recent trading activity shows that major institutional investors have taken different stances with AMC shares. For instance, during the third quarter, Amalgamated Bank increased its stake in AMC Entertainment by 31.5%, owning now 11,568 shares valued at $53,000 after an acquisition of 2,771 shares. Private Advisor Group LLC also enhanced its holdings by 27.5%, now owning 15,011 shares worth $68,000 following an investment of 3,237 additional shares during the same period. Victory Capital Management Inc. registered a 20.1% increase in its stake, totaling 45,711 shares valued at $208,000 after acquiring an additional 7,661 shares. Moreover, Waldron Private Wealth LLC grew its position by 47.5%, holding 25,173 shares valued at $115,000 after purchasing 8,102 new shares. Meanwhile, KBC Group NV entered a new investment in AMC during the third quarter, which was worth $37,000. Institutional ownership currently stands at 28.80% of the company's stock.

About AMC Entertainment

AMC Entertainment Holdings, Inc. operates in the theatrical exhibition sector and manages, owns, or has interests in theaters across the United States and Europe. Founded in 1920, the company is headquartered in Leawood, Kansas.

Investing Considerations

Investors considering whether to invest $1,000 in AMC Entertainment right now should be cautious. Recently, analysts have rated AMC Entertainment as a "Reduce," indicating that there may be better investment opportunities available at this time. It is advisable to review other potential stocks that have gained positive acknowledgements from industry experts.

AMC, Stocks, Analysts