Here's How Much Investing $1,000 In AMC Entertainment's 2013 IPO Would Be Worth Today

Investors who owned stocks in the past seven years generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return since Dec. 13, 2013 is 107%. On that day in 2013, AMC Entertainment Holdings Inc AMC held its IPO, and IPO investors have had a rough go of it ever since.

AMC’s Big Debut: Movie theater giant AMC Theaters was founded way back in 1920 and made its first move to go public in 2006 before adverse market conditions forced it to withdraw its proposal. Chinese conglomerate Wanda Group acquired AMC in May 2012 for $2.5 billion.

AMC finally pulled the trigger on an IPO in 2013, pricing shares at $18 per share and raising $332 million. Wanda group initially maintained an 80% ownership stake following the IPO, but it sold its stake in 2018 to private equity firm Silver Lake.

After selling IPO shares at $18, AMC shares hit the ground running, soaring up to their all-time high of $36.13 by early 2015. However, the stock soon ran out of steam as the entertainment business made a dramatic shift to over-the-top streaming models.

AMC shares dropped below their $18 IPO price for the first time ever in late 2017. Unfortunately for IPO investors, they didn’t stop there. AMC reported a $176.5 million loss in the second quarter of 2017, and ticket sales were down 5.8% that year. Total U.S. box office gross for the year was down 2.7% to $11.1 billion.

AMC shares found support at around the $12.50 level through mid-2019 before the bottom fell out of the stock. Even before COVID-19 forced the shutdown of all movie theaters, AMC shares were trading below $8 in early 2020.

2020 And Beyond: AMC plummeted to its all-time low of $1.95 in March before rebounding a bit to around $4.20. AMC theaters remain closed, but the company said most will reopen starting on July 30.

AMC IPO investors certainly haven’t gotten the performance they were hoping for from the stock. In fact, $1,000 worth of AMC IPO stock in 2013 would only be worth about $233 today.

Looking ahead, analysts aren’t expecting much out of AMC in the near future. The average price target among the eight analysts covering the stock is $4 suggesting 4.5% downside from current levels.

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