Overview: AMC Entertainment Holdings Inc.

AMC Entertainment Holdings Inc. is the world’s largest cinema chain, with 356 theaters in Europe (totaling 2,866 screens) and 620 theaters in the United States (7,967 screens).

In 2012, the company was acquired by Chinese conglomerate Wanda Group for $2.5 billion, which invested $500 million to modernize the theater chain. In September 2018, Silver Lake Partners acquired 32% of AMC’s shares for $600 million and gained a seat on the company’s board of directors.

With the onset of the coronavirus pandemic, the situation deteriorated significantly. On March 18, 2020, it was announced that all theaters would be closed. However, AMC Entertainment upgraded the filter-ventilation units in the theaters, equipped them with electrostatic sprayers to disinfect the air, and with the lifting of quarantine restrictions, traditional theaters resumed operations.

In January 2021, two additional share issues were registered: 50 million and 44.4 million in addition to the 287 million already outstanding. Silver Lake will own the new shares in exchange for a $500 million investment.

What Influences the Price and Whether to Buy AMC Shares

The decision to buy AMC stock should be based on fundamental and technical analysis by studying the chart of AMC stock price. It is important to consider the VIX share price and other factors.

The stock’s rise in 2021 was driven by phenomenal speculative buying, but after the retail investor frenzy subsided, almost all positions were lost.

Now, AMC stock prices are influenced by the company’s financial reports, revenue and profit dynamics, news about the theater chain’s prospects or, conversely, unfavorable trends. The head and shoulders pattern can indicate a price reversal on the chart. It is worthwhile to consider it first when going through trading training.

AMC stock and its dividends

AMC stock dividends were paid in 2019, after which there is no data on payments. Until then there were $0.2 and $0.3 per share.

How to sell AMC stock

Now that the price of AMC stock is falling, the only way to capitalize on it is through speculative short selling.

The price of AMC stock is on its way to an all-time low, which can only provide a buying entry point over time. In the meantime, selling is done by opening a sell order in the trading platform, which will allow you to capitalize on the weakening price and lock in profits below.

Major NYSE shareholders: AMC

The main shareholder of AMC, which owns a controlling stake in the securities, is the Wanda conglomerate from China. In addition, it is known that the company’s top management got rid of some of the securities they owned. Adam Aron, who holds the post of CEO, sold more than 300 thousand securities in December 2021, leaving himself a stake of 96 thousand shares. The securities of AMC CFO Sean Goodman were also sold – he got rid of all his 18.32k shares.

AMC Ticker Forecast

In order to find the best entry point to trade AMC stock, it is necessary to be guided by technical analysis. And to determine its direction, it is important to evaluate fundamental factors, in particular the momentum of the fundamentals.

On the monthly timeframe we see that AMC shares are falling after they were speculatively accelerated in price in early 2021. Now, prices have lost almost all of those positions and continue to fall. There are strong technical conditions for the continuation of the decline.

Interesting facts about the price of AMC

In 2021, shares of AMC Entertainment Holdings, Inc. became the epicenter of the so-called meme race. Thanks to the activity of retail traders on the social network Reddit and through the broker Robinhood in the U.S., a flurry of buying sent the stock price skyrocketing by hundreds of percent. Large institutional investors who held positions to sell these securities suffered significant losses. Also in 2021, the company announced that it would accept cryptocurrency as payment for tickets.

Bottom line

AMC stock can be a good speculative tool for trading. When buying them, you should be guided mainly by technical analysis. And if the weak financial situation of the company will bring quotes to historical lows, from these values will be the most profitable entry points to buy.