AMC Entertainment Holdings Inc (NYSE: AMC) is bringing its summer movie camp programme back this summer. Shares of the cinema chain are up 15% at writing.
What does it mean for the AMC stock?
AMC said its summer movie camp programme will go live on June 24 and will remain in place until August 14.
During this period, customers will be able to watch select movies for only $3.0 (excluding tax) at its participating theatres. A new title will be available on Monday and Wednesday of each week, as per a press release on Tuesday.
Note that over 250 AMC locations across the United States will participate in the summer movie camp programme. According to the $1.60 billion company based out Leawood, Kansas:
Eight crowd pleasing animated movies will rotate through the programme this summer, including recent releases like Migration and classics like Despicable Me 2.
AMC stock climbed to a high of $6.85 last amidst the return of meme stock craze after Keith Gill or “Roaring Kitty” ended his three-year hiatus and started posting on the social media again.
Are AMC shares worth owning in June 2024?
Recent surge in AMC stock may be an opportunity to pull out considering analysts at Roth MKM continue to see downside in the cinema chain to $4.0.
They reiterated their “sell” rating on $AMC last week on limited cash flow projections and considerable debt. On top of it, the investment firm sees valuation of the New York listed firm as not favourable.
Its analysts did agree in their recent research note that a potential box office success could be a benefit for AMC Entertainment Holdings Inc but said adjusting to the financial structure and a material increase in share count could take years for the Leawood-headquartered firm.
$AMC ended its first financial quarter with $624 million in cash – of which it may burn $355 million in the current quarter, as per Roth MKM analysts. Still, Adam Aron, chief executive of the theatre chain said last month:
We grew our domestic market share, maintained total revenues in line with the prior year, and continued to grow our per patron profitability metrics at levels well above pre-pandemic measures.
The entertainment company has sold 38.5 million AMC shares to raise about $124 million (excluding commissions and fees) in Q2. The meme stock does not pay a dividend at writing.
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