Stock Market Today, July 7: AMC Slides as Box Office Success Fails to Ease Dilution Concerns

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NYSE: AMC

AMC Entertainment

Today's Change

(-1.15%) $-0.02

Current Price

$1.72

Key Data Points

Market Cap

$1.6BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$1.65 - $1.74

52wk Range

$0.93 - $3.60

Volume

53.4M

Avg Vol

38.9M

Gross Margin

24.97%

AMC Entertainment Holdings (AMC 1.15%), a theatrical motion picture exhibition and cinema operations provider, closed at $1.72, down 1.15%. AMC stock pushed upward in June on strong summer attendance, but has struggled since the firm’s equity offer.

Trading volume reached 52.6 million shares, coming in about 35% above its three-month average of 39.0 million shares. AMC Entertainment Holdings IPO'd in 2013 and has fallen 99% since going public.

How the markets moved today

S&P 500 (^GSPC 0.45%) closed at 7,504, down 0.45%, while the Nasdaq Composite (^IXIC 1.16%) closed at 25,819, down 1.16%. Among movie theater rivals, Cinemark Holdings closed at $29.42, down 1.77%, and Marcus closed at $21.94, down 1.83%.

What this means for investors

AMC Entertainment extended its losses today and has now fallen over 15% in the past week. June saw strong box-office momentum, beating last year’s figures. Numerous new releases attracted moviegoers and helped drive the stock to its highest point so far this year.

However, its $200 million equity sale, priced on June 23, halted momentum and has weighed on its price in the past two weeks. The firm will use the proceeds to reduce debt, which could put it on a stronger footing long term, but investors are concerned about dilution.

As customers return to movie theatres for a slew of summer hits, investors will be watching AMC’s August earnings for more on whether the summer’s renewed movie interest will hold and how much AMC’s alternative revenue streams, such as its Arena One real-time in-theater concerts, can help the stock regain momentum.

US500-0.95%
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