Can AMC Entertainment Avoid Bankruptcy?
Many people (myself included) are longing for the day we can go back to movie theaters. But perhaps a better question to ask today is: will there even be movie theaters to go back to?
Perhaps the answer is yes and no. For small, independent movie theaters across the country, it may have been difficult or impossible to obtain the bridge financing needed to keep the business afloat. PPP loans helped early-on in the crisis, and more money for loans just passed with the new stimulus bill. But it may not be enough for these businesses.
Larger chains, like AMC Entertainment Holdings, have had more luck. This week, AMC announced it had signed deals for $917 million in financing to secure its business until late 2021. The influx of cash has come from raising $506 million in equity deals and $411 in debt financing, underscoring investor's appetite for risk and extreme levels of liquidity available in the capital markets. Indeed, many credit ratings firms have lowered their expectations for corporate defaults in 2021, given continued government support, the ability to refinance, and optimism that mass immunization will happen in 2021 -- a big "if."
For investors curious about the overall movie entertainment industry, and some of the key players in the space, check out Tickeron's A.I.dvisor's detailed analysis below.
AMC in downward trend: price dove below 50-day moving average on May 23, 2023
AMC moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend. In of 37 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on AMC as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMC turned negative on May 11, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 36 similar instances when the indicator turned negative. In of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for AMC crossed bearishly below the 50-day moving average on May 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMC broke above its upper Bollinger Band on May 04, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMC advanced for three days, in of 260 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 153 cases where AMC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.164). P/E Ratio (0.000) is within average values for comparable stocks, (73.786). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.625). AMC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.059). P/S Ratio (1.264) is also within normal values, averaging (111.483).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. AMC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AMC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a holding company with interest in movie theatres
Industry MoviesEntertainment
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| BOTZ | 27.82 | 0.54 | +1.98% |
| Global X Robotics & Artfcl Intllgnc ETF | |||
| HEEM | 23.81 | 0.33 | +1.39% |
| iShares Currency Hedged MSCI Em Mkts ETF | |||
| KTF | 8.56 | 0.06 | +0.71% |
| DWS Municipal Income Trust | |||
| ESCR | 18.22 | 0.06 | +0.30% |
| Xtrackers Blmbrg US InvmtGrdCorp ESG ETF | |||
| AAPD | 21.73 | -0.32 | -1.45% |
| Direxion Daily AAPL Bear 1X Shares | |||
AMC and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMC has been loosely correlated with MCS. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if AMC jumps, then MCS could also see price increases.
| Ticker / NAME | Correlation To AMC | 1D Price Change % | ||
|---|---|---|---|---|
| AMC | 100% | +1.11% | ||
| MCS - AMC | 46% Loosely correlated | -0.00% | ||
| CNK - AMC | 42% Loosely correlated | +1.56% | ||
| ROKU - AMC | 40% Loosely correlated | +0.60% | ||
| IMAX - AMC | 39% Loosely correlated | +1.44% | ||
| DIS - AMC | 37% Loosely correlated | +0.72% | ||
More | ||||
