AMC Entertainment (NYSE:AMC) retail investors now own 91.2% of the company according to the latest data provided.
Institutions currently own 8.46% of the company, while private corporations, insiders, and state owned shares fall below 1% of the company’s float.
In terms of short interest, it’s come down significantly.
Is the short thesis finally over?
Recently, AMC Entertainment has tapped into a market with big profit as it continues to close deals with artists to distribute film concerts globally.
In early 2022, we saw Chance The Rapper partner up with AMC Entertainment when they released “Magnificent Coloring World”, a dive into the artist’s tour.
Taylor Swifts 2023 New Eras Tour broke record at AMC Entertainment in September when it pulled more than $26 million in pre-sale tickets alone.
The movie theater company announced that Swift’s film beat the record previously held by “Spider-Man: No Way Home,” which held the previous one-day AMC record with $16.9 million in sales, according to a news release.
On Twitter, AMC CEO Adam Aron announced that AMC Theatres Distribution will lead the effort in enabling RENAISSANCE: A FILM BY BEYONCÉ to take over movie theatres worldwide.
Fundamentally speaking, it seems AMC Entertainment may have just found its next gold mine.
Shares of the movie theatre company are currently up more than +34% in the past month.
The stock has held relatively well after its reverse stock split, at least significantly better than Mullen Automotive and Vinco Ventures.
AMC stock rose past $10.25 on Tuesday demonstrating bullish price action as levels finally broke the $8 consolidating range.
Is AMC Entertainment about to start ripping again?
Here are but a few of the company’s latest developments.
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AMC Entertainment Secured $325 Million in Brand New Equity
In September, AMC Entertainment announced that it had secured $325 million in brand new equity to bolster liquidity and pay down its debt.
AMC raised approximately $325.5 million of new equity capital through the sale of 40 million shares, before commissions and fees, at an average price of approximately $8.14 per share.
“The completion of this ATM equity offering significantly boosts AMC’s cash reserves, addresses current liquidity concerns, and fortifies the balance sheet,” said the company.
Commenting on the capital raise, AMC President and CEO Adam Aron said, “The successful completion of this equity offering marks another significant milestone for AMC.
Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive.
As we navigate the recovery phase of our industry, this infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests.”
A B. Riley analyst says AMC Entertainment is now safe after the company’s recent stock sale.
Analyst Eric Wold has given AMC Entertainment a ‘neutral’ rating with a $45 price target.
He believes that management should continue to use the equity sales to pay off debt and even use the cash to buy new movie theaters and diversify growth strategies.
“We believe these proceeds not only provide an increased near-term liquidity safety net while the lingering Hollywood strikes potentially put the 2024 film slate at risk but also provide an opportunity for the company to reduce the principal balances for the higher interest rate debt scheduled for maturity in 2026 and beyond,” Wold wrote.
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