Here is the latest 2023 AMC short seller report.
As we start the last month of the third quarter this year, AMC Entertainment (NYSE:AMC) has seen many ups and downs.
For the first half of 2023, AMC Entertainment stock was up between +20% and +40% YTD.
In March, AMC was ranking as the #1 stock with the highest borrow fee rate according to data from S3 Partners.
And by April, it was reported that short sellers had paid an estimated $1.91 billion in short borrow fees during the first quarter of 2023.
AMC’s cost to borrow shot up to 1,000% during the start of the second quarter and again in July and August.
However, as we near the end of the third quarter this year, AMC Entertainment stock has now dropped more than -63% this year-to-date after the company issued a 1-for-10 reverse stock split and converted its equity (APE) into common shares.
The movie theatre chain beat Q1 expectations and reported its financial results for the second quarter on 8 August where the company saw 15.6% revenue growth and a net income of $8.6m compared to a net loss of $121.6m in Q2 2022.
Financial Times reports that in 2023, AMC short-sellers made a profit of $407m while GameStop short-sellers have lost a little over $80m.
“On 28 August, AMC short-sellers made over $25m within 24 hours. Short interest in the firm’s free-float shares stands at around 12.5%.”
Investors are raising concerns over AMC Entertainment’s sudden drop in short interest as price has not reflected any short positions closing.
Others allege short sellers have profited from ‘naked short selling’ manipulation, an illegal short selling strategy that has caught the attention of many small companies facing irregularities in their company’s trading this year.
AMC’s short seller report is subject to change, though it will take significant momentum to lift the company’s share price.
Also Read: Will Shareholder Value Recover After AMC’s New Proposals?
Other AMC Entertainment News
The SEC has now violated the 13-day Threshold Securities List rule for AMC Entertainment which states that a broker-dealer must immediately close out all fail-to-deliver positions by purchasing shares in the open market.
As of Thursday, AMC has now been on the threshold list for 49 consecutive days and pricing has not reflected indication of strong purchasing in the past weeks.
“Sometimes there are fails to deliver, and a fail to deliver is when you don’t have the ability to prove that you borrowed the stock legally before you actually shorted it”, said Yahoo’s Senior Markets and Data Reporter Jared Blikre.
He says a company joining the NYSE Threshold Securities List is a clear indication of manipulation in the market, primarily through ‘naked short selling’, which Wes Christian says is a worldwide problem.
AMC Entertainment FTDs surged big in the end of June according to the latest report by Stocksera.
By June 30th, the number of fails-to-deliver that day surpassed more than 12.9 million, equivalent to more than $57 million.
In April, AMC hit all-time highs when FTDs soared between 17 million and 18 million, equaling $85.4 million (non-cumulative).
And in July, FTDs saw as much as $60 million, or 14.1 million FTDs in one single day.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Is AMC’s share price manipulated? Leave your thoughts in the comment section down below.
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About The Author
I left a message a few days ago wondering why one of your emails said that shareholders were going to get $13 per share and there was nothing for a shareholders at all. Please respond to this message. Thank you.
Hi John, it was a $13 PCT, meaning percentage from the settlement as stated in that particular article.
Cost to borrow who gets money and does it elevate the price shorts borrowed at? 🇺🇸
Anger. Frustration. Conned. Adam Aron corruption and deceit,
Leave your thoughts below.
Maybe I missed it but where’s the actual report? I thought we would see who was short and how many shares they shorted.