AMC Networks Inc. (NASDAQ:AMCX) shares fell to a low of $53.895 before closing at $55.32. Intraday shares traded counted 0.72 million, which was -19.59% lower than its 30-day average trading volume of 601.88K. AMCX’s previous close was $54.25 while the outstanding shares total 41.93M. The firm has a beta of 1.26, a 12-month trailing P/E ratio of 9.95. The stock’s Relative Strength Index (RSI) is 64.88, with weekly volatility at 2.77% and ATR at 1.99. The AMCX stock’s 52-week price range has touched low of $20.16 and a $83.63 high. The stock traded higher over the last trading session, gaining 1.97% on 06/02/21.
Investors have identified the Broadcasting company AMC Networks Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.32 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
AMC Networks Inc. (AMCX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AMCX, the company has in raw cash 993.12 million on their books with 8.44 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.96 billion total, with 761.82 million as their total liabilities.
AMCX were able to record 99.03 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 104.6 million. In cash movements, the company had a total of 107.56 million as operating cash flow.
Potential earnings growth for AMC Networks Inc. (AMCX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, AMC Networks Inc. recorded a total of 691.74 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.16% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -12.8%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 280.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 411.17 million. This allows shareholders to hold on to 41.93M with the recently reported earning now reading 2.26 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (2.98 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.93 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AMCX sounds very interesting.
Is the stock of AMCX attractive?
In related news, President and CEO, Sapan Joshua W sold 40,000 shares of the company’s stock in a transaction that recorded on May 03. The sale was performed at an average price of 48.57, for a total value of 1,942,986. As the sale deal closes, the President and CEO, Sapan Joshua W now sold 39,980 shares of the company’s stock, valued at 2,068,321. Also, EVP and General Counsel, Gallagher James sold 7,000 shares of the company’s stock in a deal that was recorded on Mar 15. The shares were price at an average price of 81.84 per share, with a total market value of 572,880. Following this completion of acquisition, the EVP and General Counsel, Gallagher James now holds 5,000 shares of the company’s stock, valued at 343,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.60%.
3 out of 15 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on AMC Networks Inc.. 3 analysts has assigned a Sell rating on the AMCX stock. The 12-month mean consensus price target for the company’s shares has been set at $49.52.