Our viewpoint on AMC Networks (USA Stocks:AMCX) and Mediaco Holding (USA Stocks:MDIA)?

AMCX Stock

USD 16.99 0.36 2.16%

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It looks like Mediaco Holding will be up for a correction way faster as its share price went up 1.60% today to AMC Networks's 1.08%. As many rational traders are trying to avoid media space, it makes sense to break down AMC Networks a little further and understand how it stands against Mediaco Holding and other similar entities. We are going to inspect some of the competitive aspects of both AMC Networks and Mediaco.

Published over a month ago

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Reviewed by Rifka Kats

By analyzing existing fundamental indicators between AMC Networks and Mediaco, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Mediaco with a short position in AMC Networks. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AMC Networks has an asset utilization ratio of 53.53 percent. This suggests that the company is making $0.54 for each dollar of assets. An increasing asset utilization means that AMC Networks is more efficient with each dollar of assets it utilizes for everyday operations.

Our viewpoint on AMC Networks (USA Stocks:AMCX) and Mediaco Holding (USA Stocks:MDIA)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as AMC Networks or Scienjoy is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is AMC Networks's Liquidity

AMC Networks financial leverage refers to using borrowed capital as a funding source to finance AMC Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AMC Networks financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between AMC Networks's total debt and its cash.

Correlation Between AMC Networks and Scienjoy Holding Corp

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding AMC Networks together with similar or unrelated positions with a negative correlation. For example, you can also add Scienjoy Holding to your portfolio. If Scienjoy Holding is not perfectly correlated to AMC Networks it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When AMC Networks, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between AMCX and SJ for more information.

Note

Are you currently holding both AMC Networks and Scienjoy Holding in your portfolio?

Please note if you are using this as a pair-trade strategy between AMC Networks and Scienjoy Holding, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Payment of 52145 shares by Blank Matthew of Amc Networks subject to Rule 16b-3

Legal trades by AMC Networks insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Amc Networks insider trading alert for payment of amc networks inc. class a common stock by Blank Matthew, Interim CEO, on 14th of September 2022. This event was filed by Amc Networks Inc with SEC on 2022-09-14. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is AMC Networks valued reasonably by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at AMC Networks revenue. Based on the latest financial disclosure, AMC Networks reported 3.08 B of revenue. This is 79.07% lower than that of the Media sector and significantly higher than that of the Communication Services industry. The revenue for all United States stocks is 67.38% higher than that of AMC Networks. As for Mediaco Holding we see revenue of 55.49 M, which is much higher than that of the Communication Services

AMCX

3.1 B

AMCX	3.08 Billion	98.23
Sector	0.0	0.0
MDIA	55.49 Million	1.77

AMC Networks technical analysis suggests possible bounce back

Current mean deviation is at 2.28. AMC Networks exhibits very low volatility with skewness of 0.26 and kurtosis of 1.38. However, we advise investors to further study AMC Networks technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AMC Networks' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AMC Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on AMC Networks

While some other entities under the entertainment industry are still a bit expensive, AMC Networks may offer a potential longer-term growth to investors. All things considered, as of the 17th of February 2023, our analysis shows that AMC Networks actively responds to the market. The company is overvalued and projects below average probability of financial unrest for the next 2 years. Our primary 90 days buy-or-sell advice on the company is Cautious Hold.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of AMC Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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