AMC stock jumps 6% as Vanguard and UBS bet big on the cinema chain
AMC Entertainment has seen a surge in institutional investment during the third quarter of 2024. Major firms like Vanguard and UBS significantly increased their stakes in the cinema chain. The moves come as AMC's stock price remains volatile, with analysts maintaining a cautious outlook. In Q3 2024, Vanguard expanded its AMC holdings by 13.1%, bringing its total to over 50 million shares. UBS made an even bolder move, boosting its stake by 4,538% to more than 23 million shares. This dramatic increase followed strong box office performance, particularly from the film Project Hail Mary.
AMC reported $1.29 billion in revenue for the latest quarter but continued to operate at a loss. Earnings per share stood at -$0.24, and analysts forecast a full-year loss of -$1.38 per share. Despite these challenges, AMC's stock rose by roughly 6% to around $1.00 on March 30.
Institutional investors now hold about 28.8% of AMC's outstanding shares. While Wall Street analysts keep a 'Reduce' rating on the stock, the average price target of $2.32 sits well above the current trading level. The recent institutional buying spree highlights renewed interest in AMC, even as the company faces financial struggles. With a mixed outlook from analysts and a significant gap between the current price and target, the stock's future remains uncertain. The impact of box office hits like Project Hail Mary could play a key role in shaping investor confidence moving forward.
