Yahoo Finanza AMC Entertainment Shares Plunge Over 4% as Company Eyes to Sell 15 Million Shares
Pandemic-hit AMC Entertainment Holdings’ shares fell more than 4% on Thursday after it said that it has reached an agreement with some banks to sell nearly 15 million shares as COVID-19 pandemic hurt business, sending its shares down over 4%.
The world’s largest movie theater operator said in a filing that postponement of major releases slated for the Thanksgiving and Christmas holidays until next year would significantly impact its liquidity in the fourth quarter, Reuters reported.
Following this announcement, AMC Entertainment shares fell over 4% to $4.57 on Thursday. However, the stock is still down over 30% so far this year.
AMC Entertainment stock forecast
Five analysts forecast the average price in 12 months at $4.63 with a high forecast of $7.00 and a low forecast of $2.00. The average price target represents a 0.33% increase from the last price of $4.62. From those five equity analysts, none rated “Buy”, four rated “Hold” and one rated “Sell”, according to Tipranks.
AMC Entertainment had its price target raised by B. Riley to $5.50 from $4. B. Riley currently has a neutral rating on the stock. Wedbush raised their price objective to $7 from $4 and gave the company a neutral rating. Credit Suisse Group downgraded AMC Entertainment from a neutral rating to an underperform rating and cut their target price for the stock to $2 from $4.
A number of other equities research analysts have also recently issued reports on the stock. Barrington Research reaffirmed a hold rating on shares of AMC Entertainment. Citigroup raised their target price to $4.00 and gave the stock a sell rating. At last, Zacks Investment Research cut their target price on to $3.50.
Analyst views
“With future capital returns forecasted to fall short of the cost of capital, AMC is expected to continue to be a major Value Eraser. With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. AMC has a slightly positive Appreciation Score of 68 but a very low Power Rating of 4, triggering the Negative Value Trend Rating,” noted Price Target Research.
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This article was originally posted on FX Empire
