AMC Entertainment Holdings, Inc. Share Forecast November 2021 – Time To Buy AMC?
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Shares of the American movie theatre chain AMC Entertainment Holdings, Inc. (NYSE: AMC) are in the green today, after closing at $39.46 on 12th November (5:25 GMT-5). As the results for third-quarter sales came in on Monday, the total sales figure was at $763.2 million which has seemingly surpassed the estimations made by analysts. Furthermore, AMC reported their loss figure to be 44 cents per share, better than analyst’s forecast of 53 cents loss per share. The reopening of movie theatres has picked up worldwide and there has been much improvement in the attendance rate of moviegoers. Although the rate of moviegoers hasn’t reached the levels seen prior to March 2020, the ease of lockdown has influenced the probability rate of moviegoers. However, will AMC be able to hold onto the soaring share prices? Or will the uncertain pandemic situation again impact the AMC stocks? Let’s find out.
AMC – Technical Analysis
According to the financial statement of AMC, the market cap of the world’s largest cinema operating company is at $20.256B with total assets worth $11.329B. Whereas, the total revenue for the year 2020 was $1.24B and a year before that was $5.47B.
Moving Averages for AMC such as Exponential Moving Average (20) (39.27), Simple Moving Average (20) (39.03), Exponential Moving Average (30) (39.28) and Simple Moving Average (30) (38.57) are pointing towards buying. Oscillators such as Momentum (10) (4.23) and MACD Level (12, 26) (0.27) are pointing to buying as well.
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Recent Developments
Following the closures of cinema theatres due to worldwide COVID-19 lockdown, the AMC suffered from tumbling share prices as their primary source of income came to a complete halt. However, as the world is progressively returning to normalcy and the movie theatres have reopened, the sales were gradually picking up.
But the real silver lining was noticed when the attendance rate of moviegoers picked up. Although the beginning of 2021 showed promising figures, it was only in the mid-year when theatres were able to amp up their in-theatre release schedules. Now, AMC being one of the world’s largest movie operating companies witnessed the most impressive performance than any other company as they are 1,670% up this year.
Moreover, AMC has managed to garner the attention of a group of retail investors which has resulted in the company’s stock prices to go up. The company is also putting in extra efforts to reduce their debts which was their biggest challenge so far. In fact, AMC announced that they are on the verge to redeem their highest interest debt by $35 million.
Should You Buy AMC Entertainment Holdings, Inc. Shares?
AMC has made a really impressive comeback as the management of the company is taking shareholder-friendly steps to be back in the game. The sales have primarily picked up due to the increasing rate of movie fans returning to theatres.
But the company is also diversifying its operations by dwelling deeper in the popcorn industry. Additionally, the company is also leaning towards its fandom with meme investors. The stocks of AMC are looking up to a brighter side as it has considerably risen over 2000% in comparison to last year.
It is preferred to watch the share prices for the company in upcoming months to see what more steps the company takes to eliminate the challenge of its debts.
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