AMC Entertainment Holdings (NYSE:AMC), a theatrical motion picture exhibition and cinema operations provider, closed at $1.72, down 1.15%. AMC stock pushed upward in June on strong summer attendance, but has struggled since the firm’s equity offer.
Trading volume reached 52.6 million shares, coming in about 35% above its three-month average of 39.0 million shares. AMC Entertainment Holdings IPO’d in 2013 and has fallen 99% since going public.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) closed at 7,504, down 0.45%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) closed at 25,819, down 1.16%. Among movie theater rivals, Cinemark Holdings closed at $29.42, down 1.77%, and Marcus closed at $21.94, down 1.83%.
What this means for investors
AMC Entertainment extended its losses today and has now fallen over 15% in the past week. June saw strong box-office momentum, beating last year’s figures. Numerous new releases attracted moviegoers and helped drive the stock to its highest point so far this year.
However, its $200 million equity sale, priced on June 23, halted momentum and has weighed on its price in the past two weeks. The firm will use the proceeds to reduce debt, which could put it on a stronger footing long term, but investors are concerned about dilution.
As customers return to movie theatres for a slew of summer hits, investors will be watching AMC’s August earnings for more on whether the summer’s renewed movie interest will hold and how much AMC’s alternative revenue streams, such as its Arena One real-time in-theater concerts, can help the stock regain momentum.
Should you buy stock in AMC Entertainment right now?
Before you buy stock in AMC Entertainment, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AMC Entertainment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,200,223!*
Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 210% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
