AMC’s Short Interest Now Hits Record High This Year
AMC Entertainment’s (NYSE:AMC) short interest has now hit a new record high this year.
As of Friday, financial data firm Ortex reports AMC’s short interest at 30.07%, updated daily here.
Ortex has also given AMC Entertainment a short score of 93 (previously 95), which measures the probability of a short squeeze.
According to the financial data firm, ‘Short Score’ uses a multi-factor model that incorporates multiple short-related metrics, with a higher score indicating that the stock is heavily-shorted and has other characteristics that increase the possibility of a short squeeze occurring.
AMC’s ‘Utilization’ came down for the first time this year after being at 100 utilization since 2021.
Utilization is the ratio between the number of shares on loan across all outstanding loans in the wholesale market and the number of shares available for lending at lending programs.
In July, AMC’s cost to borrow soared more than 1,000%, which is the interest hedge funds are paying annually to short AMC stock.
AMC ranked #1 on Companies Market Cap list of top 100 companies with the highest cost to borrow where more than 7,600 companies are listed.
“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop,” said Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners.
“One factor that is also killing profits for short sellers is the borrowing costs on stocks that no one is willing to part with,” he continued.
Also Read: Goldman Sachs Gives AMC a New Price Target of $175
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Latest AMC Entertainment Stock News and Updates Today
AMC Entertainment (NYSE:AMC) CEO has now provided shareholders with a new update on the high volume of FTDs this year.
After investors expressed their concerns on social media regarding the company’s alarming number of FTDs and days on the NYSE Threshold Securities List, Adam Aron finally published a long overdue statement.
Between March and April, the CEO announced that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs.
Investors flooded the Twitter post below tagging AMC CEO Adam Aron requesting for answers.
In addition to the overwhelming amount of requests from investors, ‘FTDs’ began to trend on Twitter, further fueling the concerns online.
“Many of you are incensed by the high number of “Fail to Deliver” AMC shares, and that AMC again has been on the Threshold List for multiple weeks. We repeatedly have gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar,” said the CEO on FTDs today.
While skeptics continue to request for material proof of such communications, other investors feel at ease knowing the CEO is in part taking action against this manipulative force in the market.
On Tuesday, July 11th, AMC fails-to-deliver hit a record high of $60,019,141, or approximately 14,155,458 total FTDs that day.
While July’s full report is still updating, we can see that the month carried out an average of 12 million AMC FTDs per day.
AMC stock is currently up +25% this year-to-date and down more than -73% in the past year.
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