AMC Entertainment Holdings, Inc. (AMC) engages in the theatrical exhibition business through its subsidiaries, having operations in the United States segment and International Markets segments. The company was founded in 2007 and is headquartered in Leawood, Kansas.
AMC stock has outperformed the broader U.S. stock market in 2021. However, shares of AMC Entertainment Holding seem to have lost their momentum in the past three months. After showing gains of nearly 1,7345% in 2021, the stock lost around 12% in the past three months. This loss seems minimal compared to the total gains in 2021; nevertheless, it may indicate that the company’s best days are over.
AMC Stock: The Negative Factors
All the negative factors that I will mention about AMC Entertainment relate to the company’s fundamentals, with one exception. The first factor is that AMC Entertainment turned to raising cash via stock offerings to fund its operations amid the pandemic. AMC Entertainment’s shareholders have been substantially diluted in the past year, with total shares outstanding growing by 274.1%. This is a massive stock dilution.