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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a holding company with interest in movie theatres
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