For the past few days, meme stocks have yet again become a hot favorite among investors. Though AMC Entertainment Holdings, Inc. (AMC) has no company-specific news, investors seem to be spilling over from the development in another meme stock – GameStop Corp. (GME).
Shares of the video game retailer GameStop surged 14.5% to close at $141 a piece on Wednesday after climbing over 30% on Tuesday. The jump in price followed the purchase of 100,000 shares of the company by billionaire Ryan Cohen’s investment company. Cohen, the co-founder of pet-supplies retailer Chewy, Inc. (CHWY) and chairman of GameStop, boosted its ownership stake to 11.9%.
After recording price gains in the past few days, both GameStop and AMC Entertainment are trending more than 2% lower in pre-market trading, at last check.
Investors Remain Bearish
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 52.6% downside potential to current levels. Shares have decreased 48.16% over the past six months.
Also, according to TipRanks’ Stock Investors tool, investors have a bearish opinion on AMC Entertainment shares. Per the tool, 5% of investors holding portfolios on TipRanks have decreased their stake in AMC stock over the last 30 days. Furthermore, 1.5% 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.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
