TLDR
- AMC stock bounced 4% on Friday after hitting an all-time low Thursday, with RSI showing deeply oversold conditions triggering short-term buying
- The company reported its strongest pre-Christmas weekend since 2021, drawing 4 million guests and generating $88 million domestically
- AMC’s partnership with Netflix for special events like the Stranger Things finale generated over $15 million in food and beverage sales in two days
- The company plans to offer up to $150 million in new stock starting February 2026, raising dilution concerns among investors
- Billionaire Robert Citrone acquired 32.75 million shares through Discovery Capital Management, betting on recovery
AMC Entertainment Holdings Inc shares climbed roughly 4% on Friday after the stock hit a fresh all-time low the previous day. The move comes as technical indicators flash oversold readings and box office numbers show surprising strength.
AMC Entertainment Holdings, Inc., AMC
The stock rebounded despite trading 16.4% below its 20-day moving average and 41.3% below its 100-day moving average. The RSI sits at 18.83, deep in oversold territory. This level typically attracts bargain hunters and forces short sellers to cover positions.
AMC reported its strongest pre-Christmas weekend since 2021. The company drew over 4 million guests and pulled in $88 million domestically. Avatar: Fire and Ash added fuel to the recovery story, grossing $483 million worldwide.
The company’s partnership with Netflix continues to pay off. The Stranger Things finale run generated over $15 million in food and beverage sales in just two days. Management has expressed optimism about bringing more Netflix content into AMC theaters throughout 2026.
Premium formats like IMAX, Dolby, and laser projection continue to boost per-patron spending. These higher-margin offerings help improve the company’s cash flow picture. Analysts have started pointing to potential undervaluation relative to long-term cash flow recovery.
The stock has dropped 61.45% over the past 12 months. Shares currently trade closer to 52-week lows than highs. The MACD indicator remains below its signal line, confirming bearish pressure persists.
Balance Sheet Pressures Mount
AMC’s balance sheet remains under pressure. The company amended a note agreement allowing for up to $150 million in stock offerings beginning February 2026. This potential dilution weighs on investor sentiment even as operational metrics improve.
The company recently sold most of its stake in Hycroft Mining Holding Corporation for $24.1 million. Management plans to reinvest the proceeds into its core exhibition business.
Billionaire Robert Citrone took a contrarian stance. His Discovery Capital Management acquired approximately 32.75 million shares. Citrone appears to be betting the distressed equity is undervalued compared to the box office recovery trajectory.
Wall Street maintains a Hold rating with an average price target of $5.41. Citigroup maintains a Sell rating with a $2.70 target. Wedbush upgraded the stock to Outperform with a $4.00 target.
Earnings on the Horizon
Investors are watching for the next earnings report on February 24. Analysts expect a loss of 5 cents per share, an improvement from the 18-cent loss in the same quarter last year. Revenue estimates stand at $1.41 billion, up from $1.31 billion year-over-year.
Key resistance sits at $2.00 while support holds at $1.50. The combination of oversold RSI and bearish MACD suggests mixed momentum heading into the earnings release. Friday’s bounce appears more technical than fundamental, with short covering likely playing a role in the move.
