Bears Blast AMC Entertainment Stock Before Earnings

The stock is up more than 20% in 2023

Deputy Editor
Jul 31, 2023 at 2:00 PM
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The shares of AMC Entertainment Holdings Inc (NYSE:AMC) are running higher this afternoon, up 5.9% to trade at $4.93 at last check. The rise comes after the movie theater chain achieved its highest ever single-week admissions revenue, following the release of "Barbie," "Oppenheimer," and other major motion pictures.  

What's more, the security recently appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the last two weeks. In AMC's case, 3,081,724 weekly calls, and 4,873,223 weekly puts crossed the tape in the past 10 days, led by the September 3 put over that time period.

MAO AMC Chart July 312023

The company is slated to report earnings after the close on Aug. 8, which could explain why bears are edging out bulls. Over its last eight next-day sessions, AMC stock managed to finish higher just twice. The shares averaged a 7.4% move during the past two years, regardless of direction.

On the charts, AMC managed a substantial rally after a mid-June pullback towards its 2023 lows, rising above $6 per share on July 24 -- its highest level since early March. Though down 45% over the last 12 months, the equity is up nearly 21% year-to-date.

AMC Chart July 312023

Analysts are also bearish toward the equity, with all five in coverage calling it a tepid "hold" or "strong sell." Plus, AMC's 12-month consensus target price of $2.27 is a 54% discount to current levels. Short interest is an area to keep an eye on, with a 22.9% rise in the last two reporting periods. The 150 million shares sold short still make up 29% of the stock's available float, or more than six days' worth of pent-up buying power. 

 

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