AMC Entertainment Holdings Inc. (AMC, Financial)Â CEO and President Adam Aron purchased 31,747 shares of the company for $31.50 per share on Feb. 13, according to a Form 4 with the Securities and Exchange Commission.
Aron now owns 51,747 shares of the company.
AMC Entertainment Holdings has a market cap of $3.46 billion, a price-earnings (P/E) ratio of 24.97, an enterprise value of $5.37 billion and a price-book (P/B) ratio of 1.94.
AMC Entertainment Holdings is headquartered in Leawood, Missouri, and it is engaged in the theatrical exhibition business. It also owns and operates or has interests in theaters primarily located in the U.S.
The company obtains licenses based on factors including number of seats and screens available for a particular picture, revenue potential and the location and condition of its theaters.
The company recently announced that it is celebrating black history month with free screenings of “Hidden Figures” in communities across the U.S.
According to an article on the Wall Street Journal:
“In celebration of Black History Month, 21st Century Fox and AMC Theatres are joining forces to provide free screenings of Academy Award-nominated film 'Hidden Figures' in communities across the country. The film – starring Taraji P. Henson, Octavia Spencer and Janelle Monáe – tells the 'untold' story of three African-American female NASA mathematicians during the space race of the 1960s. 'Hidden Figures' has been nominated for three Academy Awards including Best Picture and Best Supporting Actress for Octavia Spencer's portrayal of Dorothy Vaughan.”
According to GuruFocus, AMC Entertainment Holdings has a 4 out of 10 financial strength rating with a cash-debt ratio of 0.02 and an equity-asset ratio of 0.32. The Piotroski F-Score of 7 indicates the company is in a healthy financial situation.
AMC Entertainment Holdings has a 5 out of 10 profitability and growth rating with an operating margin of 8.26%, a net margin of 4.02%, a return on equity (ROE) of 8.05%, three-year revenue growth of -8.90% and three-year EBITDA growth of 2.30%.
It is noteworthy that Jim Simons (Trades, Portfolio) more than doubled his stake in AMC Entertainment during the fourth quarter, adding 631,385 shares of the company to his portfolio. Mario Gabelli (Trades, Portfolio) also purchased 17,799 shares of the company during the fourth quarter.
Since the gurus purchased shares, AMC Entertainment’s market price has dipped by an estimated 4%.
Below is a Peter Lynch chart that shows AMC Entertainment is trading above its intrinsic value
Disclosure: Author does not own any shares of this company.
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