For the past few days, meme stocks have been back in the limelight among investors. On Monday, AMC Entertainment Holdings, Inc. (NYSE: AMC) recorded a whopping 45% gain at the close.
Positive sentiment followed the statement of the movie theater company’s CEO Adam Aron. He expects more “transformational” M&A deals in the coming period following the company’s investment in gold and silver mining operator Hycroft Mining (HYMC), earlier this month. AMC invested $27.9 million in HYMC, acquiring a 22% stake in the miner.
Aron commented, “I’d like to think there will be more third-party external M&A announcements going forward where AMC can reach for the stars and intriguing investments that have potentially attractive returns.”
Furthermore, Hycroft revealed the completion of a $138.5 million stock offering program, adding fuel to the AMC stock price. Remarkably, shares of Hycroft soared 10.8% in the extended trading session on Monday after closing 81.25% higher on the day.
Investors Remain Bearish
Recently, Citigroup analyst Jason Bazinet reiterated a Sell rating and a price target of $6 (79.54% downside potential).
The Street is overall bearish on AMC stock with a Moderate Sell consensus rating. That’s based on three Holds and two Sells. The average AMC Entertainment price target of $9.83 implies 66.48% downside potential to current levels. Shares have decreased 17.47% over the past six months.
Also, according to TipRanks’ Stock Investors tool, investors have a bearish opinion on AMC Entertainment shares. Per the tool, 4.6% of investors holding portfolios on TipRanks have decreased their stake in AMC stock over the last 30 days. Furthermore, 0.7% of these individuals have reduced their holdings in the recent week.
AMC gets a 3 out of 10 on TipRanks’ Smart Score ranking, suggesting that AMC is likely to underperform market expectations.
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