AMC Entertainment Sees 84.5% Surge in Short Interest in December

AMC Entertainment Holdings, Inc. experienced a significant increase in short interest during December 2023. As of December 31, short interest reached a total of 92,917,767 shares, reflecting an 84.5% rise from the 50,362,080 shares reported on December 15. Currently, approximately 18.2% of the company’s stock is short sold, with a short-interest ratio of 3.5 days based on an average trading volume of 26,274,887 shares.

This surge in short interest comes amid mixed sentiments from Wall Street analysts regarding AMC’s stock performance. Several brokerages have recently adjusted their ratings. Notably, Macquarie lowered its price target for AMC shares from $3.00 to $2.00 while maintaining a “neutral” rating. Similarly, Citigroup reaffirmed a “sell” rating, setting a new price target of $1.30, down from $2.30.

Market Reactions and Analyst Perspectives

In addition to these changes, Weiss Ratings issued a “sell (e+)” rating for AMC, while Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating earlier in November. As of now, one analyst has rated AMC with a “buy,” six have suggested a “hold,” and two have advised selling. According to data from MarketBeat.com, AMC holds an average rating of “reduce” with a consensus target price of $2.76.

During midday trading on Thursday, AMC’s stock price increased by 2.9%, reaching $1.60. Trading activity saw 35,514,953 shares exchanged, which is slightly below the average volume of 40,592,590 shares. The company currently has a market capitalization of $818.14 million and a price-to-earnings ratio of -1.13. Over the past year, AMC’s stock has seen a low of $1.44 and a high of $4.08.

Recent Earnings and Future Projections

AMC recently disclosed its earnings results on November 5, reporting an earnings per share (EPS) of ($0.21), falling short of the consensus estimate of ($0.18) by $0.03. The company generated revenue of $1.30 billion for the quarter, surpassing the expected $1.21 billion. Despite this positive revenue outcome, it marked a 3.6% decline year-over-year, compared to ($0.04) EPS reported for the same period the previous year. Analysts anticipate AMC will post an EPS of ($1.38) for the current year.

AMC Entertainment, founded in 1920 in Kansas City, is recognized as one of the largest movie exhibition companies globally. It provides a wide range of cinematic experiences, including IMAX® and Dolby CinemaTM formats. The company continues to navigate a challenging landscape as it adapts to changing consumer preferences and market dynamics.

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