If you are considering buying AMC stock, you will be glad to know that the P/E ratio and earnings per share (EPS) of the company are available. Financial reports are released quarterly, and the P/E ratio can be determined by dividing the stock price by the EPS. You can find this information online, and some analysts even predict an EPS surprise for AMC, with the stock rising year over year. Fortunately, there are many ways to get these information without any special software.
Short interest makes up 19% of its float
After doubling in value last week, AMC shares continued to rise on Wednesday. While short interest continued to rise, hedge funds reduced their exposure to the company. However, the opposite reaction has also been noted, attributed to a lack of widespread pain in the meme industry. Short interest has increased in AMC and GameStop, with each stock seeing more shorts than longs. However, the two companies are still relatively well-liked by investors, despite the heightened risk.
The increase in short interest on AMC is in line with other companies. AMC recently acquired a stake in a gold mining company, and has used this cash to buy other theaters. AMC also bought a stake in a small mining company with a questionable financial history. While the shorts are making profits, it’s unlikely the stock is cheap, which could spark a chain reaction of buying and selling.
Valuation
The recent earnings results from AMC have been encouraging. Although the company has experienced volatility in recent years, management is focused on turning the company around. Aron has defended his plan to return to pre-pandemic levels by pursuing value-creating investments. This includes AMC’s recent stake in Hycroft Mining. While this is positive news, it should not be the primary factor in determining the value of AMC stock.
Using the FCF yield metric or assuming a higher FCF margin can help you estimate AMC stock’s value. According to Seeking Alpha, analysts are projecting sales of $1.5 billion in Q4 2023, which would represent an annual run-rate of $6 billion. This would suggest a price-to-sales multiple of 1.5 times, which is lower than the historical average of 2x over the last five years. Nevertheless, if you are looking for a more accurate AMC stock valuation, consult Morningstar.
Long term prospects
As a dividend investor, you may wonder whether AMC stock has good long-term prospects. After all, this is the largest film company in the world, and while its business model seems sound, there are a few glaring flaws. First of all, AMC is heavily indebted, with debt yielding over 19%. As a result, it may be more prudent to pay down your debt, rather than invest extra cash in AMC stock. In addition, you should avoid random investments in gold mining companies, which would probably be a terrible use of your money.
AMC recently reported Q1 earnings, and while it beat analyst estimates, the company’s balance sheet has weakened. Despite this, management continues to talk big. While box office numbers aren’t at all rosy, this company has a good long-term plan. The stock has fallen more than 30% since the Q1 report, and analysts’ target prices have remained unchanged. However, despite the dip, AMC stock is still at 52-week lows.
Research
AMC stock rose nearly 200% over the past five trading sessions from May 24 to 28. The stock nearly finished the week up 100%, and WallStreetBets chat room traders bought AMC call options in January 2021. If you’re considering investing in AMC stock, you should understand how the stock has changed since it first went public in 1999. Read on to learn more about AMC stock research. AMC stock research will also give you an idea of how it can change in the future.
If you’re thinking about investing in AMC stock, consider these facts: First, AMC has a growing number of movies. The company’s latest movie, Black Panther: Wakanda Forever, has attracted a lot of short sellers. In June, the company announced that global admissions revenue for June 9-12 was 15% higher than in the same period last year. While the COVID-19 pandemic has negatively affected theater attendance, the company is aiming to boost its business in this region by bringing in new customers.
