Wall Street’s most bullish AMC Entertainment Holdings, Inc. (NYSE:AMC) analysts are predicting the share price to blow past $23 per share during the next 12 months. The current median share price forecast by them is $19.5, suggesting that the stock could increase 34.67% in that time frame. The average price target of $19.58 calls for a nearly 35.22% increase in the stock price.
AMC Entertainment Holdings, Inc. (NYSE:AMC) rose 0.35% in recent trade and currently has a stock-market value of $1.51B. The shares finished at $14.48, after trading as low as $14.15 earlier in the session. It hit an intraday high Thursday at $14.61. Trading activity significantly weakened as the volume at ready counter decreased to 1,091,656 shares versus 1,928,620 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,431,728 shares. The stock is now 24.19% above against its bear-market low of $11.66 on December 27, 2018. It has retreated -48.14% since it’s 52-week high of $21.45 reached in September. Now the market price is up 5.85% on the year and up 17.92% YTD.
AMC stock’s 50 day simple moving average (SMA 50) price is $14.07 and its 200-day simple moving average (SMA 200) price is $16.23. The company’s stock currently has a total float of 51.3M shares. Its weekly volatility is hovering around 3.04% and felt 4.18% volatility in price over a month. On the upside, the share price will test short term resistance at around $14.68. On a downside, the stock is likely to find some support, which begins at $14.22. The failure to get near-term support could push it to $13.95.
It had seen a new analyst call from Loop Capital, which initiated the stock at Hold on February 01. Analysts at B. Riley FBR, shed their positive views on January 22 by lowering it fromBuy to Neutral. Analysts at Imperial Capital, made their first call about the stock on July 11, recommending it is Outperform. The Benchmark Company analysts came out with bullish views on June 21 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.
When looking at valuations, AMC Entertainment Holdings, Inc. (AMC) has a cheap P/E of 20.57x as compared to industry average of 45.55x. Moreover, it trades for 52.65 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.07x price/book and 0.28x price/sales. Compared to others, AMC Entertainment Holdings, Inc. is in a different league with regards to profitability, having net margins of 2%. To put some perspective around this, the industry’s average net margin is 13.33%. AMC’s ROE is 6.6%, which is also considerably worse than the industry’s ROE of 11.97%. It’s also not liquid in the near term, with a current ratio of 0.6. The stock has a debt/capital of 3.78.
AMC last reported earnings that exceeded expectations. The company raked in $0.43 per share, -99.73% change on the same period last year. That was better than consensus for $0.16. Revenue for the recent quarter stood at $1.41 billion, down 0% on last year and above the $1.4 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.18 billion to $1.32 billion, which should be compared with $1.34 billion generated last year. EPS is seen in a range of -$0.54 to -$0.02, against the $0.15 reported a year ago.
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