Wells Fargo Keeps Sell Rating on AMC Networks, Sets $5 Price Target

Wells Fargo reaffirmed their Sell rating on AMC Networks with a $5 price target, while the word on the street suggests a Hold analyst consensus rating with a $6.30 average price target. AMC Networks' market cap is $293.4M and P/E ratio is -1.49.

Wells Fargo has reaffirmed its Sell rating on AMC Networks (AMCX) with a price target of $5, while analysts on the street have shifted to a Hold consensus rating with an average price target of $6.30. This latest update comes amidst a backdrop of mixed earnings expectations and market sentiment.

AMCX is scheduled to release its Q2 2025 earnings results on Friday, August 8th, before the market opens. The consensus earnings per share (EPS) estimate is $0.61, a 50.8% year-over-year (YoY) decline, and the revenue estimate is $582.99 million, a 6.9% YoY decrease [1]. Over the past two years, AMCX has beaten EPS estimates 38% of the time and revenue estimates 38% of the time. However, recent estimates have seen more downward revisions, indicating growing skepticism among analysts.

The company's market capitalization stands at $293.4 million, with a P/E ratio of -1.49, reflecting a significant discount to its historical valuation. Wells Fargo's Sell rating is based on concerns about the company's debt management and the broader market conditions affecting the cable and pay television services industry. The analyst consensus rating of Hold, while slightly more optimistic, still indicates caution regarding AMCX's current financial trajectory.

AMCX's financial performance has been a subject of debate. On one hand, the company has demonstrated resilience in maintaining operations and managing its debt. On the other hand, the company has faced challenges in revenue growth and profitability. The market's perception of AMCX's future prospects is influenced by these conflicting signals, with some analysts predicting a turnaround while others remain skeptical.

As of the current date, July 2nd, 2025, AMCX's stock has a short interest ratio of 3.8, indicating a moderate level of bearish sentiment. The company's insider ownership stands at 27.06%, and institutional ownership is 59.77%, suggesting strong market trust. However, the lack of insider trading activity in the past three months may indicate a cautious approach from insiders.

In conclusion, the recent analyst ratings and earnings expectations highlight the ongoing uncertainty surrounding AMCX's financial health. While Wells Fargo maintains a pessimistic outlook, the shift in analyst consensus towards a Hold rating suggests a more nuanced view of the company's prospects. Investors should closely monitor AMCX's Q2 earnings results and the broader market trends to make informed investment decisions.

References:

[1] https://seekingalpha.com/news/4481547-amc-networks-q2-2025-earnings-preview
[2] https://in.investing.com/news/company-news/consensus-cloud-q2-2025-slides-revenue-returns-to-growth-as-corporate-segment-expands-93CH-4952335
[3] https://www.marketbeat.com/stocks/NASDAQ/AMCX/