Meme Stock AMC is down 51% year todate. Is it a Buy?
πππ$AMC Entertainment(AMC)$
However AMC estimates Revenue to be USD 951.4 million, down from USD 954.4 million the previous year. This was due to the box office in Q1 24 being adversely impacted by the 2023 Hollywood writers and actors strikes. Adam Aaron also expressed optimism about upcoming film releases and expects to see an increasingly strong box office as the year progresses.
AMC said that the diluted loss per share for Q1 24 to be - 62 cents compared to diluted loss over share of - USD 1.71 for the previous year quarter.
Cash and cash equivalent as at March 31 2024 is USD 624.4 million.
In March 2024, AMC launched at the market equity program to sell its Class A Common Stock. As of April 25, AMC has sold around 12.8 million shares and has raised gross proceeds of USD 41.8 million.
AMC is on a mission to pay off its debts. The company 's total debt at the end of 2023 was around USD 4.56 billion down from USD 5.01 billion at the end of 2022.
In December AMC completed an at the market equity offering raising approximately USD 350 million as it attempts to reduce its debt burden.
AMC' s stock has seen a decline in recent months and is down 51% year todate. In 2023 AMC's shares have plummeted 93%.
AMC's continued equity offerings raise concerns about share dilution which may have negatively affect its share price.
AMC's revenue has yet to reach Pre Pandemic Levels but its robust box office performance and improved fundamentals in 2023 is promising.
AMC is set to report its Q1 24 earnings on May 8.
Wall Street Analysts are mixed on AMC with a Target Price ranging from a high of USD 8 to a low of USD 3.10. The Average Target price of USD 4.62 presents an upside potential of 55%.
With a host of new movies in 2024 and IMAX cinematic experience at the theatres, AMC can slowly recover and hopefully pay off its debts in 2024.
However AMC is not for the risk adverse investors as it is a rather volatile stock.
At the last closing price of USD 2.97 per share, I believe AMC is a bargain. However AMC requires patience and time in the market in order to achieve its full potential.
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