AMC Entertainment Holdings, (NYSE:AMC) received a notable boost in investor sentiment as Roth Capital raised its earnings per share (EPS) estimate for FY2026. In a research note issued on Friday, August 16th, Roth Capital analyst E. Handler revised the forecasted EPS for AMC from $0.18 to $0.25, reflecting growing optimism about the company’s future performance. This upgrade comes as AMC continues to navigate a challenging market environment, where it has faced a mix of both positive and negative financial outlooks.
AMC Entertainment’s latest quarterly earnings, reported on August 2nd, showed the company meeting analysts’ expectations with an EPS of ($0.43). This matched the consensus estimates, though it underscored the ongoing struggles the cinema giant faces in a post-pandemic world. Revenue for the quarter was $1.04 billion, slightly above the expected $1.03 billion, but represented a significant 23.1% decline from the same period last year. The figures highlight the hurdles AMC continues to face as it attempts to regain its footing in an industry still reeling from reduced consumer foot traffic and shifting entertainment consumption patterns.
The upgraded FY2026 EPS estimate from Roth Capital is a bright spot in what has otherwise been a turbulent time for the stock of AMC. Other analysts have been less optimistic, with Morgan Stanley recently lowering its price target for AMC from $11.00 to $10.00 and maintaining an “underweight” rating. Similarly, Macquarie raised its price target slightly, from $3.50 to $4.00, but still assigned an “underperform” rating to the stock. Citigroup also showed cautious optimism, upping its price target from $3.10 to $3.20, yet still classified the stock as a “sell.”
Meanwhile, Benchmark continues to take a neutral stance, holding its price target at $4.00. With six analysts rating the stock as a “sell” and three issuing a “hold” rating, AMC Entertainment currently holds an average rating of “Reduce,” with a consensus price target of $6.03 according to MarketBeat.com. Despite the mixed reviews, Roth Capital’s upgrade suggests there is some confidence in AMC’s longer-term potential, particularly as the company continues to adjust its business strategy in a rapidly changing market.
Institutional investors have also been active in AMC stock, with several hedge funds modifying their positions. Vanguard Group Inc. notably increased its stake by 22.9% in the first quarter, now holding 24.8 million shares worth $92.3 million. Renaissance Technologies LLC also boosted its holdings by 18.2% in the second quarter, bringing its total to over 10.2 million shares valued at $51.2 million. Additional significant activity includes Norges Bank purchasing a new position worth $12.6 million and SG Americas Securities LLC expanding its stake by an impressive 1,894%, now owning over 1.1 million shares.
These institutional moves suggest that while AMC’s stock might be struggling, it is still attracting considerable interest from major investors. Currently, 28.8% of the company’s stock is held by hedge funds and institutional investors, indicating a level of confidence in the company’s ability to recover and deliver value in the long term.
At the time of publication, AMC’s stock was trading at $5.02, a modest increase of 0.70%. With a 50-day simple moving average of $5.04 and a 200-day simple moving average of $4.40, AMC’s stock performance shows signs of stabilization, though it remains well below its 1-year high of $40.30. The stock’s current market capitalization stands at $1.47 billion, with a price-to-earnings ratio of -3.93, reflecting the ongoing volatility and challenges the company faces.
As AMC continues to adjust to the evolving market dynamics, the combination of mixed analyst ratings, institutional interest, and a cautiously optimistic FY2026 outlook suggests that the road ahead will be bumpy, but not without potential for growth. Investors will be watching closely to see how the company leverages its position in the entertainment industry to drive future profitability.
