AMC’s valuation ‘remains at extreme levels’ as most of its shareholders are now retail, says analyst


AMC Entertainment Holdings Inc. AMC, -11.38% earnings were better than expected, but the stock’s valuation versus its peers “remains at extreme levels,” according to Benchmark analysts. Benchmark estimates that the “vast majority” of the company’s shareholder base are now retail investors. AMC was an early meme stock in the movement triggered by retail investors gathering on Reddit earlier this year, and has managed to raise almost $2 billion of liquidity, ” which should allow them to persist and deleverage,” said Benchmark analyst Mike Hickey. Shares slid 1.9% in premarket trade Wednesday. The company posted quarterly results that beat expectations across the board on Monday, with revenue increasing more than sixfold year over year during a quarter in which “substantially all” of its theaters were open for the first time since the fourth quarter of 2019. The movie-theater chain said it “safely welcomed back” 40 million guests in the U.S., Europe and the Middle East in the third quarter, while analysts had expected 37.2 million. Benchmark rates the stock at hold.

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