AMC Entertainment explores raising new capital as its stock surges

  • AMC Entertainment is exploring raising more capital, including through yet another possible stock sale, to weather the Covid-19 pandemic and take advantage of this week’s rally in its shares.
  • The world’s largest movie theater chain, with about 1,000 cinemas worldwide, suffered unprecedented turmoil after the pandemic last year forced it to temporarily close many venues while attendance dropped at those that remained open.
  • AMC staved off bankruptcy through a debt restructuring deal last summer with its creditors and private equity firm Silver Lake, and a series of other financial transactions in recent months.
  • AMC had raised $917 million since mid-December through equity and debt issues.
  • In the last week, it raised an additional $304.8 million by selling shares this week, cashing in on an unprecedented social media-driven rally powered by amateur traders taking on hedge funds that had shorted its shares.
  • On Thursday, it said Silver Lake and other creditors decided to convert debt holdings to equity in a transaction expected to reduce AMC’s obligations by $600 million.

    AMC Entertainment fundamentals

    Over the current book year the total revenue from the company in Leawood will be 1.24 billion USD (consensus estimates). This is quite lower than 2019's revenue of 5.47 billion USD.

    Historical revenues and results Amc Entertainment Holdings plus estimates 2020

    financiële analyse

    The analysts expect for 2020 a net loss of 4.18 billion USD. According to most of the analysts the company will have a loss per share for this book year of 38.74 USD. Based on this the price/earnings-ratio is -0.34.

    Despite the expected loss the company will probably pay a dividend. Analysts expect a dividend of 3 cents per share. The dividend yield is then 0.23 percent. The average dividend yield of the entertainment companies equals a limited 0.16 percent.

    Amc Entertainment Holdings 's market capitalization is based on the number of outstanding shares around 687.68 million USD. The Amc Entertainment Holdings stock was the past 12 months quite volatile. Since last February the stock is even 108 percent higher. This year the stock price moved between 2 and 20 dollar.

    Historical stock prices Amc Entertainment Holdings

    equity research amcentertainmentholdings

    Click here for dividend Amc Entertainment Holdings. At 19.46 the stock trades 43.45 percent lower at 13.3 USD.

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