Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Shares of movie theater giant AMC Entertainment skyrocketed by more than 300% on Wednesday as individual investors piled into the stock, forcing hedge funds to scramble to cover their losses on short positions.
Shorting occurs when an investor borrows shares and sells them to others, a position taken when the investor believes the share price is going to decline. The short seller hopes to buy shares back at a lower price to settle the loan, pocketing the difference.
The move in AMC seems to be driven by the same Reddit chat board that has helped drive GameStop to new highs this week and is pushing other heavily shorted stocks higher.
It's important to note that pushing stocks in this way leads to a lot of volatility, and it's impossible to tell if the stock will continue to rise or if it will suddenly drop sharply. Casual investors should steer clear or be prepared to keep a close watch on any positions they take.
Since the stock market crash in March caused by coronavirus, AMC Entertainment's stock price has had significant positive movement.
Its last market close was $10.39, which is 28.20% up on its pre-crash value of $7.46 and 432.82% up on the lowest point reached during the March crash when the stocks fell as low as $1.95.
If you had bought $1,000 worth of AMC Entertainment stocks at the start of February 2020, those stocks would have been worth $488.38 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,610.87.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
| Open | $10.48 |
|---|---|
| High | $11.88 |
| Low | $10.40 |
| Close | $11.88 |
| Previous close | $10.39 |
| Change | $1.49 |
| Change % | 14.3407% |
| Volume | 52,782,559 |
| 52-week range | $9.70 - $72.62 |
|---|---|
| 50-day moving average | $17.18 |
| 200-day moving average | $27.94 |
| Wall St. target price | $9.95 |
| PE ratio | N/A |
| Dividend yield | $0 (0%) |
| Earnings per share (TTM) | $-2.66 |
Historical closes compared with the close of $11.88 from 2022-05-24
| 1 week (2022-05-14) | N/A |
|---|---|
| 1 month (2022-04-21) | N/A |
| 3 months (2022-02-25) | -32.73% |
| 6 months (2021-11-24) | -69.45% |
| 1 year (2021-05-25) | -27.61% |
|---|---|
| 2 years (2020-05-22) | 159.39% |
| 3 years (2019-05-24) | 12.69 |
| 5 years (2017-05-25) | 23.4 |
Valuing AMC Entertainment stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of AMC Entertainment's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
AMC Entertainment's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.42. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into AMC Entertainment's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
AMC Entertainment's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $45.8 million.
The EBITDA is a measure of a AMC Entertainment's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $2.5 billion |
|---|---|
| Gross profit TTM | $-132,300,000 |
| Return on assets TTM | -4.97% |
| Return on equity TTM | 0% |
| Profit margin | -50.2% |
| Book value | $11.69 |
| Market capitalisation | $6.6 billion |
TTM: trailing 12 months
We're not expecting AMC Entertainment to pay a dividend over the next 12 months.
Over the last 12 months, AMC Entertainment's shares have ranged in value from as little as $9.7 up to $72.62. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while AMC Entertainment's is 1.5. This would suggest that AMC Entertainment's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
AMC Entertainment Holdings, Inc. , through its subsidiaries, engages in the theatrical exhibition business. The company owns, operates, or has interests in theatres in the United States and Europe. As of March 1, 2022, it operated approximately 950 theatres and 10,600 screens. The company was founded in 1920 and is headquartered in Leawood, Kansas. .
Finder’s Retail Investor Sentiment Report polled 39,573 Internet users across 26 countries to see how they’ll be investing their money in 2022.
Find out the different ways you can invest in the S&P 500, one of the world’s most popular stock market indices.
Find out about what ETFs and index funds are, their key similarities and differences, as well as how to invest in these passive funds.
Find out about gold ETFs, what influences their prices, how you can trade them and whether they could be worth your weight in gold.
Learn the basics of what it takes for novices to get started in the investment world in India, including an overview of your options and what to watch out for.
Steps to owning and managing N/A, with 24-hour and historical pricing before you buy.
Steps to owning and managing N/A, with 24-hour and historical pricing before you buy.
Learn about the four options available to buy and sell this slippery commodity — as well as pros and cons.
Steps to owning and managing N/A, with 24-hour and historical pricing before you buy.
Bitcoin ETFs are coming to market. Here’s how you can invest in them.
