Investors Buy Large Volume of Put Options on AMC Entertainment (NYSE:AMC)

AMC Entertainment Holdings Inc (NYSE:AMC) was the target of unusually large options trading activity on Tuesday. Traders acquired 11,004 put options on the stock. This is an increase of approximately 835% compared to the typical daily volume of 1,177 put options.

AMC has been the topic of a number of research reports. Zacks Investment Research upgraded shares of DLH from a “sell” rating to a “hold” rating in a research report on Tuesday, July 9th. MKM Partners cut their price target on shares of Cinemark to $43.00 and set a “buy” rating on the stock in a research report on Monday. Barrington Research reiterated a “buy” rating on shares of AMC Entertainment in a research report on Thursday. Wedbush reiterated an “outperform” rating and issued a $22.00 price target on shares of Turtle Beach in a research report on Monday, April 29th. Finally, ValuEngine upgraded shares of Zumiez from a “sell” rating to a “hold” rating in a research report on Saturday, June 22nd. One research analyst has rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $16.94.

Shares of NYSE:AMC traded down $0.19 during midday trading on Thursday, hitting $9.62. The stock had a trading volume of 2,039,975 shares, compared to its average volume of 1,776,832. AMC Entertainment has a 12 month low of $8.73 and a 12 month high of $21.45. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 7.43. The business has a 50-day moving average of $10.34. The firm has a market capitalization of $1.02 billion, a P/E ratio of 74.00 and a beta of 0.85.

AMC Entertainment (NYSE:AMC) last released its earnings results on Thursday, May 9th. The company reported ($1.25) earnings per share for the quarter, missing the consensus estimate of ($0.51) by ($0.74). AMC Entertainment had a negative net margin of 0.72% and a negative return on equity of 11.59%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the business posted $0.14 earnings per share. AMC Entertainment’s quarterly revenue was down 13.2% compared to the same quarter last year. On average, research analysts predict that AMC Entertainment will post -0.56 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Monday, June 24th. Stockholders of record on Monday, June 10th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 8.32%. The ex-dividend date of this dividend was Friday, June 7th. AMC Entertainment’s dividend payout ratio is currently 615.38%.

In related news, Director Raymond C. Stachowiak acquired 160,559 shares of the firm’s stock in a transaction on Wednesday, May 15th. The shares were purchased at an average price of $2.73 per share, with a total value of $438,326.07. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 1.80% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of the stock. Fox Run Management L.L.C. acquired a new position in AMC Entertainment in the second quarter valued at about $158,000. North Star Investment Management Corp. grew its position in AMC Entertainment by 37.7% in the second quarter. North Star Investment Management Corp. now owns 181,501 shares of the company’s stock valued at $1,693,000 after acquiring an additional 49,735 shares during the last quarter. Campbell & CO Investment Adviser LLC bought a new position in AMC Entertainment in the second quarter valued at about $262,000. New Jersey Better Educational Savings Trust grew its position in AMC Entertainment by 33.3% in the second quarter. New Jersey Better Educational Savings Trust now owns 16,000 shares of the company’s stock valued at $149,000 after acquiring an additional 4,000 shares during the last quarter. Finally, Sepio Capital LLC bought a new position in AMC Entertainment in the first quarter valued at about $345,000. 49.08% of the stock is owned by institutional investors and hedge funds.

AMC Entertainment Company Profile

AMC Entertainment Holdings, Inc, through its subsidiaries, involved in the theatrical exhibition business. The company owns, operates, or has interests in theatres. As of December 31, 2018, it owned, operated, or had interests in 637 theatres with a total of 8,114 screens in the United States; and 369 theatres and 2,977 screens in European markets.

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