AMC Entertainment (AMC) Received its Third Buy in a Row

After Wedbush and Barrington gave AMC Entertainment (NYSE: AMC) a Buy rating last month, the company received another Buy, this time from B.Riley FBR. Analyst Eric Wold reiterated a Buy rating on AMC Entertainment today and set a price target of $20. The company’s shares closed yesterday at $11.18, close to its 52-week low of $11.13.

Wold commented:

“We are revisiting AMC Entertainment Holdings (AMC) following a surprising 32.6% decline in the shares from the recent mid-April highs, compared to much smaller declines for the other exhibitor stocks, as well as a 2.6% decline for the S&P 500 over that same period. While searching for a rationale for this decline, we came up with four potential reasons that, we believe, would represent overreactions or misunderstandings by the general investor base that can be taken advantage of at the current entry point: (1) concerns with a softer 2020 box office outlook; (2) misunderstanding around (3) impact of ASC 842 lease accounting financial statement changes; and (4) risk of additional stock sales by Wanda Group.”

According to TipRanks.com, Wold has 0 stars on 0-5 star ranking scale with an average return of -6.7% and a 30.9% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for AMC Entertainment with a $19.17 average price target.

See today’s analyst top recommended stocks >>

Based on AMC Entertainment’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $130 million. In comparison, last year the company had a net profit of $17.7 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

AMC Entertainment Holdings, Inc. engages in the theatrical exhibition business through its subsidiaries. It operates through the United States Markets and International Markets segments. The company was founded on June 6, 2007 and is headquartered in Leawood, KS.