AMC Stock Forecast 2023: Is AMC a Good Investment?
Latest AMC Stock Price
AMC Stock Forecast for the next 12 months
|Average Price Target||$10.3|
|B. Riley Securities||$15|
AMC Stock Forecast: Earnings
Last Quarter Earnings Analysis
AMC Networks Inc. reported financial results for the second quarter ended June 30, 2023. Here are the highlights of the 2nd quarter’s earnings:
Net Revenues Decline: In the second quarter of 2023, net revenues witnessed an 8% decline compared to the previous year, settling at $679 million. This decrease primarily stemmed from reduced advertising revenues, domestic affiliate revenues, and a dip in 24/7 Media production services revenues. However, the company reported 13% growth in streaming revenue.
Operating Income Reduction: Operating income also fell registering 31% drop from the prior year, reaching $106 million. Simultaneously, Adjusted Operating Income also experienced a decrease of 10% to $177 million.
Earnings Per Share (EPS) Figures: The reported Diluted Earnings Per Share (EPS) for the quarter stands at $1.60. Additionally, the quarter’s Adjusted EPS is noted at $2.02.
Other Information: Net cash derived from operating activities for the quarter totaled $158 million. Meanwhile, the Free Cash Flow recorded in Q2 was $148 million.
Last 4 Quarters’ Earnings
|(USD)||Jun 2023||Mar 2023||Dec 2022||Sep 2022|
|Net profit margin||0.64%||-24.68%||-29.03%||-23.43%|
|Net change in cash||-60.5M||-135.7M||-51.4M||-282.1M|
|Cost of revenue||1.08B||879.8M||913.4M||927.9M|
AMC stock performance so far
- Last 1 Month: +21.6%
- Last 6 Months: -78.5%
- Year To Date: -74.4%
AMC Stock Conversion Information
What is Stock Conversion?
Stock conversion is the process of exchanging one type of security for another. For example, a company might offer its shareholders the option to convert their preferred shares into common shares.
When is the AMC Stock Conversion? AMC stock conversion is set to occur on August 25, 2023.
Why is AMC initiating Stock Conversion? AMC Entertainment Holdings Inc is in the process of transforming its preferred equity units, referred to as APEs, into common shares. As per this stock conversion, the 100 APE shares of the shareholders will be converted into 10 AMC common shares.
This conversion is a result of a resolution between AMC and a group of investors who had taken legal action against the company regarding the APEs. The investors asserted that these APEs should be treated as securities and that AMC had not completed the necessary registration with the Securities and Exchange Commission (SEC). While AMC refuted these allegations, it opted for the settlement to sidestep additional legal expenses.
How Does this Affect the AMC Stocks? The outcomes from this conversion include a dilution of approximately 90% for AMC’s current shareholders. However, AMC is confident that this conversion will bolster its liquidity and alleviate its debt obligations.
AMC Stock Price Prediction for the next 5 years (Aggregated)
- AMC Stock Price Prediction 2023 is $7.71
- AMC Stock Price Prediction 2024 is $13.2
- AMC Stock Price Prediction 2025 is $20.2
- AMC Stock Price Prediction 2026 is $27.7
- AMC Stock Price Prediction 2027 is $35.2
AMC Stock Forecast Today
|1. Market's Wisdom||Partially Bullish|
|1a. Market Data||Bullish|
|1b. Technical Recommendation||Sell|
|2. Crowd's Wisdom||Partially Bearish|
|2a. Social Media Buzz||Lower|
|2b. Social Media Sentiment||Steady|
Why did AMC Stock Surge Recently?
The AMC stock price in the month of July 2023 was up 40% and the stock price is above $5. The reason behind the surge in AMC stock recently is due to the introduction of a new pricing strategy AMC.
The theater chain introduced a new pricing plan for seats called Sightline at AMC. As per the new pricing strategy, ticket prices will be adjusted during peak shows depending on where people sit.
Prime seats in the middle of the theater will cost more while neck-craning front-row seats will cost less.
Is AMC a good investment?
AMC is a risky investment because the company has a lot of debt. The company’s debt load is high because it had to borrow money to stay afloat during the COVID-19 pandemic. The company is also facing increasing competition from streaming services such as Netflix and Disney+. However, there are some reasons why AMC could be a good long-term investment. The movie theater industry is still in its early stages of development, and there is potential for significant growth in the future. The company has a strong foothold in the movie theater industry, and it is well-positioned to benefit from the growth of the industry.
Ultimately, the decision of whether or not to invest in AMC is a personal one. You should carefully consider your individual investment goals and risk tolerance before making a decision. If you are optimistic about the future of the movie theater industry and you are willing to take on some risk, then AMC could be a good investment for you. However, if you are risk-averse, then you may want to avoid investing in the company.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.