Former pandemic darling and Reddit investor mainstay AMC Entertainment (NYSE:AMC) lost over 10% in Wednesday trading. The major reason? Unhappy lenders are concerned about AMC’s cash burn rate.
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Certainly, AMC has seen some recovery in recent days. The movie industry is bringing out blockbuster titles once more and has put some new life under theater chains like AMC. However, the recovery isn’t doing as well as some would like. Lenders have reportedly begun getting organized and are working directly with restructuring advisors.
AMC has been on a downward slide for much of the last year and a half. The company lost over 77% of its value this year alone. Between now and the company’s all-time high from June 2021, the company lost almost 90% of its value.
The various troubles AMC has had over the last couple of years left it in quite a bit of trouble with analysts. Analyst consensus currently considers the company a Moderate Sell, with no analysts recommending investors buy in. The average price target is $3.53, which implies 41.70% downside risk.
