AMC Entertainment Holdings Inc. CEO Adam Aron’s compensation package increased to $25.4 million in 2023, from $23.7 million in 2022 and $18.9 million in 2021, according to a proxy statement filed with the SEC Friday.
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Shares of AMC Entertainment Holdings Inc. ended Monday’s trading up 4.1% as the stock extended its winning streak to three days — its longest-such run since a four-day streak that ended on Dec. 28, 2023.
The stock is up four of the past five days, and short interest as a percentage of AMC’s
AMC,
public float of shares was 10.91% on Monday.
Related: AMC’s stock rallies more than 10% for biggest gain since August
The movie-theater chain and original meme stock has hit a series of record lows recently but rallied last week. On Feb. 6, the stock ended the session up 10.9%, registering its biggest single-day percentage gain since Aug. 30, 2023.
AMC shares hit a record-low close of $3.67 on Feb. 5 — a far cry from the heady days of the meme-stock frenzy, during which the stock surged to an all-time closing high of $339.05 on June 2, 2021, according to Dow Jones Market Data.
Related: AMC’s bonds find buyers while original meme stock slides
Last month, AMC Chief Executive Adam Aron described the recent decline in the company’s share price as “so frustrating.”
AMC shares have fallen 89% in the last 52 weeks, compared with the S&P 500 index’s
SPX
gain of 21.4%.
AMC Entertainment Holdings Inc. CEO Adam Aron has expressed the movie-theater chain’s “eternal gratitude” to Taylor Swift as the singer-songwriter’s concert film breaks another record.
Variety reported Sunday that “Taylor Swift: The Eras Tour” has earned more than $261.6 million globally, making it the highest-grossing concert and documentary film in history, surpassing “Michael Jackson’s This Is It.”
“Now at $261.6 million globally, AMC’s first ever released film, TAYLOR SWIFT | THE ERAS TOUR just became the highest grossing concert film & highest grossing documentary film of all time,” Aron tweeted Sunday. “AMC sends our congratulations and eternal gratitude to Taylor Swift for being so remarkable.”
Related: AMC still riding a ‘Taylor Swift: The Eras Tour’ wave
AMC shares
AMC,
which recently hit record lows, have edged lower this week. The movie-theater chain and original meme-stock darling’s stock is down 85% in the past 52 weeks, compared with the S&P 500’s
SPX
gain of 20.9%.
In addition to showing “Taylor Swift: The Eras Tour” in its theaters, AMC is also the theatrical distributor for the movie. AMC Theatres Distribution, along with subdistribution partners Variance Films, Trafalgar Releasing, Cinepolis and Cineplex Inc.
CPXGF,
CGX,
clinched deals with movie-theater operators representing more than 8,500 venues globally to show the film, according to AMC.
“Taylor Swift: The Eras Tour” was breaking records even before its scheduled release on Oct. 13, prompting more showings to be added. On Oct. 11, Swift tweeted that early access showings would be held on Oct. 12, citing “unprecedented demand” for the movie.
Related: AMC shares rise as ‘Taylor Swift: The Eras Tour’ sets another record
The movie shattered the record for the biggest global opening weekend for a concert film, racking up $128 million in box-office returns, according to Comscore. Imax Corp.
IMAX,
announced that “Taylor Swift: The Eras Tour” had a $13 million global box-office debut, making it the largest Imax opening of a concert or a documentary film by a musical artist.
AMC Entertainment Holdings Inc.’s better-than-expected third-quarter results set the movie-theater chain up well for 2024, according to analysts.
“We think AMC is well-positioned in [fourth quarter 2023] and 2024, particularly as the SAG-AFTRA labor strike has finally come to an end,” Wedbush analyst Alicia Reese said in a note released Thursday. “We expect 2023 North American box office to end up 23% over 2022, or 80% of 2019 box office, with AMC at least maintaining its 22% market share if not expanding with its vast network of premium large format screens and as it distributes two major concert movies in [the fourth quarter].”
She added: “Moviegoers are finicky with content these days, but we are seeing that they also increasingly opt for premium screens and a larger basket of high-margin concessions.”
Related: Hollywood actors strike is over as union reaches tentative deal with studios
Speaking during a conference call to discuss the results, AMC CEO Adam Aron discussed the success of Taylor Swift’s record-breaking concert film, which opened Oct. 12. “Both as distributor and exhibitor, AMC benefited handsomely,” he said, adding that AMC Theatres Distribution is following up on this success with the release of “Renaissance: A Film by Beyoncé,” which hits theaters globally Dec. 1.
The CEO also hinted at more big-name concert films in the future. “We believe that we will have several more concert-film products in 2024 and 2025,” he said. “We intend to be working with some of the most known and most loved musical artists the world has ever known.”
Wedbush maintained its neutral rating and $11 price target for AMC. “The company’s heavy debt load and lack of dividend keep us from valuing shares any higher,” Reese said.
Related: AMC swings to Q3 profit, reports positive net income for second straight quarter
In a note released Thursday, Benchmark analyst Mike Hickey highlighted the progress AMC has made following the disruption wrought by the COVID-19 pandemic. “Despite a 16% decline in domestic box office attendance compared to 2019, AMC’s success was attributed to a 30% increase in contribution per patron and strategic actions taken over the past three and a half years, such as innovative marketing, cost management, and theater optimization,” he wrote. “These results reflect AMC’s promising growth path to recovery in the post-pandemic era.” Benchmark maintained its hold rating for AMC.
During AMC’s third-quarter conference call, CEO Adam Aron warned that the Hollywood writers and actors strikes would cause challenges for AMC in 2024. Just a few hours later, the Screen Actors Guild-American Federation of Television and Radio Artists announced a tentative deal with studios. Hollywood writers ended their strike in September.
“The strikes in Hollywood are finally settled!” tweeted AMC CEO Adam Aron Thursday. “AMC’s reaction to the news: Hallelujah!”
Related: AMC’s strong Q3 results lift movie theater stocks
AMC shares fell 20.6% in premarket trading Thursday after the company filed for an “at the market” sale of up to $350 million in common shares. The company’s stock has fallen 71.9% in 2023, compared with the S&P 500’s
SPX
gain of 14.2%.
AMC announced in August that it plans to issue 517 million shares of preferred stock, under the ticker symbol APE to raise more funds and counter its debts.
Shares of American movie theater chain AMC Entertainment Holdings Inc (NYSE: AMC) closed Tuesday trading at $2.55, down 18.27 percent from the day’s opening price. The losses were further exaggerated with approximately 1.18 percent during the after-hours trading session. The sudden drop in AMC shares was attributed to the shareholder’s disappointment in AMC’s management after allegedly pushing for further share dilution to raise billions of dollars to counter its huge debt. Notably, AMC Entertainment announced earlier in August that it intends to offer 517 million equity units APE shares and still be left with about 4.5 billion units in its custody to help it raise more funds.
The company used the same tactics to raise billions of dollars during the Covid-19 pandemic when most movie theaters were struggling to stay afloat. Having been hyped by a social media group dubbed WallStreetBets in early 2021, AMC shares gained the name meme stocks. Currently, the company is planning a 10-to-1 reverse stock split of its common stock, AMC, on Thursday.
Additionally, the company’s AMC shares outstanding are expected to increase to 550 million from a prior post-reverse split count of 52.5 million, thus further diluting its stock market with more than 390 million units.
“The continued decline in AMC shares … is likely due to investors focusing on the strong possibility that AMC begins issuing large amounts of equity to address the debt balance,” Eric Wold, an analyst at B. Riley Securities, noted on Tuesday. “While this is expected, I think this overlooks the opportunity for management to also utilize that access to capital and the still-elevated valuation multiple to pursue additional acquisition and expansion opportunities outside of the exhibition space.”
AMC Entertainment and Market Outlook
According to the latest stock market data, AMC shares have dropped about 50 percent in the past month as investors prepared for the stock conversion later this week. As a result, AMC shares are down approximately 73.3 percent in the past year to a market cap valuation of about $4.73 billion. However, some economists led by Roth MKM’s Handler think the common need to generate nearly $1 billion in adjusted EBITDA to justify its high market capitalization.
While issuing a price target of about 50 cents on AMC shares, Handler highlighted that the company has an upheaval amid lower turnover demand for movie theaters than anticipated during the post-Covid period.
Notably, AMC Entertainment reported a net loss of about $121.6 million on revenue of approximately $1.2 billion during the quarter that ended in June.
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Shares of
AMC Entertainment
were sinking in late trading Friday after Bloomberg reported the firm won approval to move ahead with a planned conversion of AMC Preferred Equity, or APE, units into common shares.
AMC (ticker: AMC) stock was down 27% to $3.83. APE units soared 26%.
AMC shareholders voted in the spring to increase the amount of authorized shares, convert APE units to common stock, and execute a reverse stock split. The move was held up in court after some shareholders sued the firm, arguing its issuance of APE units were meant to circumnavigate common shareholders’ voting rights.
Though the company settled with the shareholders, it needed approval from the Delaware Chancery Court to move forward. An initial settlement was rejected. The revised settlement provides more shares to individual investors.
Write to Connor Smith at connor.smith@barrons.com
AMC Entertainment Holdings Inc.’s stock fell 1.7% premarket Monday, after Citigroup opened a downside 30-day catalyst watch for the stock.
The move comes as investors await a chancery court decision that’s expected to clear the way for the company to convert its AMC Preferred Equity units
APE,
known as APEs, into common stock. The APEs were unchanged in premarket trades Monday.
Related: AMC shares fall, while APE units rise as stock-conversion battle reaches Delaware Chancery Court
AMC
AMC,
shareholders voted in support of the company’s proposal to convert the APEs in March, but the company was then hit with a class-action lawsuit. AMC subsequently reached an agreement to settle the court fight but a chancery judge must approve the settlement proposal after a two-day hearing last week. A ruling is expected within weeks, according to the Wall Street Journal.
On Thursday an AMC shareholder opposed to the settlement told the court that some investors felt the cinema chain had “stabbed them in the back,” Reuters reported.
Related: AMC shares make biggest gain in nearly three months ahead of stock-conversion hearing
Citigroup is expecting a ruling in favor of the proposal. “As a result, we would expect the value of AMC common units and APE units to converge,” analysts wrote in a note. “Given AMC’s common units trade at a premium to the APE units, we would expect downward pressure on AMC shares in the coming days.”
Last week shares of AMC made their biggest gain in nearly three months ahead of the stock conversion hearing. Shares of the movie-theater chain and meme-stock darling have risen 8.1% in 2023, while the APEs have risen 23.4%.
Related: Largest investor in AMC’s APE stock sells again, cuts stake to below 10%
Of eight analysts surveyed by FactSet, three had a hold rating and five had a sell rating for AMC.