Is there a cornucopia of returns in AMC Entertainment Holdings Inc. (AMC) And Shoe Carnival Inc. (SCVL)

AMC Entertainment Holdings Inc. (NYSE: AMC) shares are -16.16% down in the year-to-date (YTD) period and have moved 3.23% or $0.19 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +211.28% lower. Comparatively, the stock is -21.98% down YTD and 11.38% over the trailing 3-month period. If we look at the shorter duration, its week performance is 9.57% and 47.69% over the month.

Analyst Recommendations

On June 29, 2020, Credit Suisse recommended the AMC stock is a Underperform, while earlier, Wedbush had Reiterated the stock as a Neutral on August 31, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 3.40 to suggest that the AMC stock is a “Hold. 3 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $6.07 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $3.50. The forecasts give the AMC Entertainment Holdings Inc. stock a price target range of $7.00 on the higher side while at least one analyst think the stock could plunge to a low of $1.00. The two limits represent an upside potential of 13.29% or -507.0%.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 20 over the last 12 months, while SEC filings reveal that there have been 12 insider sales over the same period. Insiders have purchases 400,010 shares while those sold by company executives and officers stand at 66,507. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Shoe Carnival Inc. (NASDAQ:SCVL), on the other hand, is trading around $35.98 with a market cap of $464.86M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $38.00 and spell out a more modest performance – a 5.32% return. Some analysts are even forecasting $0.66 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Shoe Carnival Inc. (SCVL) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

SCVL’s operating margin was positive on the trailing 12 months basis, remaining steady at 1.60%, while the operating expenses over the recent quarter were at $54.76 million. This represented a 62.88% of the company’s total revenues which amounted $147.5 million. With this in place, we can see that the company’s diluted EPS declined -$1.16 on the year-over-year period, growing to $0.91 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Oct 2020), the total assets figure advanced to $629.55 million from $628.37 million over the previous quarter. The cash flow from operating activities totaled -$42.86 million, significantly lower than the -$9.31 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$46.05 million.

Insider activity

Insiders have transacted a total of 25 times at Shoe Carnival Inc. over the last 6 months, with insider purchases undertaken 15 times and accounting for 130,995 shares. Insider sales totaled 37,099 shares over the same period, with these deals completed in 10 transactions. Looking at these numbers, we realize that net purchases over that period are 5.0 shares. Insiders now hold a total of 5.56M shares after the latest sales, with 17.30% net shares purchased.

Major holders

Insiders own 28.40% of the company shares, while shares held by institutions stand at 79.70% with a share float percentage of 8.54M. Investors are also buoyed by the number of investors in a company, with Shoe Carnival Inc. having a total of 233 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 1.47 million shares worth more than $43.02 million. As of Jun 29, 2020, Blackrock Inc. held 10.43% of shares outstanding.

The other major institutional holder is Dimensional Fund Advisors LP, with the investment firm holding over 1.18 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $34.66 million and represent 8.40% of shares outstanding.