- Summary:
- AMC Stock Price Forecast - NYSE: AMC has been in a tailspin due to the upcoming APE conversion in this week. It may plunge below $2 soon.
AMC (NYSE: AMC) stock price has been in a tailspin for the past two weeks. The sellers are stepping over each other to get rid of AMC shares ahead of the APE conversion. After months of court proceedings, the conversion will finally occur on 25th August 2023.
On Monday, AMC shares tanked 23.72% in one of the biggest losing days for the stock. As a result, the stock closed at its lowest level since January 2023. The troubled stock extended its loss by another 18% on Tuesday as the sell-off intensified. If the stock doesn’t recover soon, more downside is waiting for the coming months.
AMC Reverse Stock Split And APE Stock Conversion
AMC preferred equity units (APE) were offered last year in order to raise much-needed capital. Since then, APE stock has been trading separately on the New York Stock Exchange. AMC stock price has always been higher than APE stock.
After the recent court approval, APE will be converted to AMC common shares. This would bring the prices of both securities to the same point. Since NYSE: AMC was trading well above NYSE: APE, its price collapsed right after the court’s decision. Even after a 23.7% plunge on Monday, AMC common shares are still trading above AMC preferred equity units (APE).
AMC Stock Price May Plummet Below $2
This week is turning out to be a wild ride for the long-term holders of the stock of the American entertainment company. Analysts are predicting more downside as the stock is trading at its lowest level in the last 3 years.
Considering the current price of APE, AMC stock price forecast of $1.94 is totally on the cards. The company has also announced a reverse stock split on the day of APE conversion with a 10: 1 ratio. Therefore, I expect the stock to remain extremely volatile for the rest of the week.
In the meantime, I’ll keep sharing updated AMC analysis and my personal trades on my Twitter, where you are welcome to follow me.
