AMC Entertainment Holdings Inc (NYSE: AMC) was restricted from trading multiple times on Wednesday for brief periods as retail investors continued to push the stock up, fuelling a massive 80% increase.
Traders have exchanged more than 415 million shares of AMC Entertainment so far on Wednesday. In comparison, the trading volume of the stock in the past thirty days stood at a significantly lower 143 million shares on average.
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The meme stock peaked at $69.25 per share today versus $36.72 per share last week on Friday – its previous intraday high. According to FactSet, AMC’s record close stands at $35.86 per share noted on 23rd March 2015.
Mudrick Capital bought 8.5 million shares of AMC
On Tuesday, Mudrick Capital Management bought 8.5 million shares of AMC Entertainment as it beat GameStop to become the top favourite of the Reddit investors. According to Bloomberg, however, the hedged fund made a profit as it sold its entire stake in the company shortly afterwards.
The share sale raised $230.5 million for AMC Entertainment that it said will be used to upgrade theatres, fund potential acquisitions, and minimise debt. The Leawood-based company took an unprecedented hit last year due to the Coronavirus pandemic that pushed its theatres into temporarily shutting down.
At its lowest, AMC was on the verge of bankruptcy and traded at a per-share price of only $2.0. Thanks to retail investors, however, the stock is now up close to 3,000% on a year-to-date basis. The U.S. firm rallied over 116% last week, resulting in a loss of roughly $1.23 billion for short-sellers.
AMC launches a new portal to connect with its investor base
Ever since AMC Entertainment reported its latest quarterly financial results, CEO Adam Aron has been increasingly focused on making special efforts for the retail investors, including postponing the annual shareholders meeting by more than a month.
On Wednesday, he introduced AMC Investor Connect – a new portal on the company’s website that will offer company updates and rewards like exclusive screenings and free popcorn to these investors. The chief executive also wants to use the portal to communicate directly with the investor base.
“During my five-plus year tenure as CEO at AMC, I’ve taken great pride in the relationships I have forged with AMC’s owners. With AMC Investor Connect, that effort in relationship building will continue apace even if our shareholders now number in the millions. After all, these people are the owners of AMC, and I work for them,†he said.
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