AMC( AMC, $2.60) shares downgraded by Loop Capital, on bankruptcy possibility
AMC Entertainment shares got a rating downgrade from analysts at Loop Capital, who feel there’s an increased possibility of the theater chain filing bankruptcy claims.
Loop Capital’s Alan Gould lowered rating on AMC to sell from hold. Gould also slashed his price target on the stock to $1 a share (from $4) – which represents 68% downside from the stock's Tuesday closing price.
In mid-March, AMC shut 1,000 of its theaters with some 11,000 screens , for six to 12 weeks. It recently told landlords that it will stop paying rent.
In April, The Wall Street Journal, citing people familiar with the matter, reported that lenders to AMC had sought services of the law firm of Gibson, Dunn & Crutcher for advice on expected restructuring discussions.
Gould projected negative cash flow of -$285 million in the first half of the year for AMC, and indicated that the coronavirus crisis could lead to some liquidity issues at the company.
AMC sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for AMC moved above the 200-day moving average on August 20, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
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Notable companies
The most notable companies in this group are Netflix (NASDAQ:NFLX), Walt Disney Company (The) (NYSE:DIS), Roku (NASDAQ:ROKU), Paramount Global (NASDAQ:PARA), iQIYI (NASDAQ:IQ), HUYA (NYSE:HUYA), AMC Entertainment Holdings (NYSE:AMC).
Industry description
Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.
Market Cap
The average market capitalization across the Movies/Entertainment Industry is 9.56B. The market cap for tickers in the group ranges from 134 to 262.83B. NFLX holds the highest valuation in this group at 262.83B. The lowest valued company is LRDG at 134.
High and low price notable news
The average weekly price growth across all stocks in the Movies/Entertainment Industry was -3%. For the same Industry, the average monthly price growth was 12%, and the average quarterly price growth was 8%. APHP experienced the highest price growth at 25%, while AMFL experienced the biggest fall at -47%.
Volume
The average weekly volume growth across all stocks in the Movies/Entertainment Industry was 5%. For the same stocks of the Industry, the average monthly volume growth was -30% and the average quarterly volume growth was -13%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 64
Price Growth Rating: 54
SMR Rating: 83
Profit Risk Rating: 87
Seasonality Score: -15 (-100 ... +100)