External financing arrangements during recent weeks, along with analyst revisions to the stock’s target price, have led to optimism around AMC Entertainment Holdings Inc. (NYSE:AMC), which is one of the 15 best NYSE penny stocks to buy according to hedge funds.
On June 24, AMC Entertainment (AMC) entered into an agreement with some institutional investors for a sale of 95.25 million shares, to raise an estimated $200 million in gross proceeds
Part of these proceeds will be utilized to redeem $125.5 million of its 6.125% Senior Subordinate Notes due 2027 and to pay for associated costs. Image by Gerd Altmann from Pixabay The management also aims to use the proceeds for other corporate needs, which include capital outlays across theatres for a better customer experience, debt repayments, and increasing cash reserves. Back on June 11, Drew Crum from B.
Riley increased the firm’s target price on AMC Entertainment Holdings Inc. (NYSE:AMC) from $2 to $2.25, while maintaining a Buy rating on the stock. Crum noted the company’s stronger-than-expected May domestic box office performance and greater confidence in second-quarter numbers. However, the analyst believes that much of this confidence seems to have already been priced into the current share price, which limits further upside potential.