AMC Entertainment stock is having its first bullish price runup after months of downtrend price action.
The stock is up more than 20% this second week of February.
On Thursday we saw AMC Entertainment stock was up nearly 30% on the weekly chart.
Trading volume surpassed 100 million on Thursday though the stock ended trading red.
What’s causing AMC Entertainment stock to climb now?
Keep reading below.
Welcome to Franknez.com – AMC’s weekly chart is looking rather strong and with the utilization now at 100, it seems we’ve seen this pattern before.
Let’s get right into it!
This week’s AMC news
AMC Entertainment just hired former Frito-Lay executive Ellen Copaken to lead the company’s branded popcorn business.
AMC stock surged 10% after the announcement which tells us the company is beginning to have fundamental value again.
While shareholders might be buying and holding the stock for a short squeeze, CEO and President Adam Aron is focused on the fundamental growth of the company.
Moody’s just upgraded AMC to Caa2, noting a positive outlook for the company in a recovering industry.
With Adam Aron announcing a debt refinance plan, the company is set to pay off its debt originally owed by 2025 this year.
Short interest & utilization
AMC’s short interest data shows us the stock has a perfect setup for a short squeeze play.
Utilization has reached 100 meaning every single share from the supply is out on loan.
These are shares that have been borrowed and at some point, need to be returned or paid back.
AMC’s short interest has reached 22.07%.
This is going play an important role as short sellers begin to close their short positions.
Will AMC Entertainment stock continue to go up?
AMC as a company is out of serious trouble.
Adam Aron has his focus on paying company debt, growth, and innovation.
And with a strong shareholder base, AMC Entertainment stock is sure to continue to this upwards trend.
Are you holding AMC stock?
Leave a comment below.