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To expand its audience base, movie exhibition company AMC Entertainment (AMC) has launched an open caption format at 240 locations in 101 markets in the U.S. The format particularly targets those people whose native language is not English or who have hearing difficulties.
Shares of the company closed 1.7% higher on Friday. The stock, however, declined 0.6% in early trade on Monday.
Based out of Kansas, the company operates nearly 950 theatres and 10,500 screens across the globe. (See Insiders’ Hot Stocks on TipRanks)
Open caption showtimes are available on AMC’s mobile application and website for the participating locations. This format is also available via the company’s Private Theatre Rentals program.
The Executive Vice-President of Worldwide Programming and Chief Content Officer at AMC, Elizabeth Frank, said, “By adding open captions to the variety of presentation formats we offer, AMC locations become a more welcoming place for millions of Americans who are deaf or hard of hearing, as well as many for whom English is not their native language.”
Meanwhile, AMC will continue to offer most of the showtimes with closed captioning. Thus, the movie-going audience will have access to assisted listening devices at all locations across the U.S.
Last month, Macquarie analyst Chad Beynon downgraded the rating on the stock to Sell from Hold with a price target of $6.
The analyst said, “AMC remains the riskiest of the companies, given rent obligations, higher debt and abnormally high valuation.”
Overall, the stock has a Hold consensus rating based on 3 Holds and 1 Sell. The average AMC Entertainment price target of $11.75 implies 71.2% downside potential. Shares have gained nearly 1,927% year-to-date.
According to TipRanks’ Smart Score rating system, AMC scores a 6 out of 10, suggesting that the stock is likely to perform in line with market averages.