AMC Entertainment Holdings Inc.

AMC Entertainment Holdings Inc. (NYSE: AMC) is an American movie theater chain founded in Kansas City, Missouri, and now headquartered in Leawood, Kansas. It is the largest movie theater chain in the world. Founded in 1920, AMC has the largest share of the U.S. theater market ahead of Regal and Cinemark Theatres.

Key Highlights:

• Q1FY23 Financial Highlights: In Q1FY23 AMC’s revenue surged by 21.5% on YoY basis to USD 954.4 million, gross profit improved by 16.9% to USD 307.6 million, Operating losses narrowed by 43.1% to USD 169.7 million and net losses narrowed by 30.2% to USD 235.5 million. Overall financial health of the company improved on YoY basis. However, the company is still exposed to balance sheet risk Debt outstanding as of % of total capital is still at all time high.
• AMC Entertainment to Launch NFTs. AMC Entertainment Holdings Inc. announced on June 6, 2023, that it would launch non-fungible tokens (NFTs). The company plans to sell NFTs that will give holders access to exclusive content and experiences.
• AMC Entertainment to Launch Subscription Service. AMC Entertainment Holdings Inc. announced that it would launch a subscription service. The service will allow members to see unlimited movies for a monthly fee.

Technical Observation

AMC's shares are currently trading in an strong bearish zone on both the weekly and daily price charts. Its shares are currently trading below the crucial short-term as well as long-term support levels of  20-day, 50-day, 100-day, and 200-day SMAs,. However, the 14-period RSI, the leading momentum indicator, is lingering in the oversold zone, suggesting a likely retreat from the present levels. A trend reversal confirmation is unlikely to occur until the stock breaks out above the USD 5.5 to USD 6.3 price range.

As per the above-mentioned price action, recent key business and financial updates, downward momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to AMC Entertainment Holdings Inc (NYSE: AMC) at the current price of USD 4.05 as of June 23, 2023, at 10:15 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is June 23, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.