Antara Capital just disclosed it shorted AMC Entertainment (NYSE:AMC) stock in a new SEC filing.
“The exercise of a call option by a third-party holder obligated Antara Master Fund to effect a short sale of 10,700 shares of Class A Common Stock and borrow shares from an unaffiliated broker for delivery against the sale.”
“The exercise of a call option by a third-party holder obligated Antara Master Fund to effect a short sale of 600 shares of Class A Common Stock and borrow shares from an unaffiliated broker for delivery against the sale,” said the filing.
Antara disclosed shorting 11,300 total shares of AMC Entertainment from Wednesday, April 19 through Thursday, April 20.
Antara Capital has been selling AMC stock all year according to their insider transaction history.
Today, the institution holds zero shares of AMC Entertainment stock per Fintel.
Antara Cashes Out a Whopping $72.4 Million in APE Shares
An SEC filing shows Antara disposed more than 48 million APE shares at the price of $1.51 on Wednesday March 15, leaving the company with a total of 179.2 million shares in its armory.
The company currently has a 17.2% ownership in APE (NYSE:APE).
Soon, retail investors will no longer be able to purchase the equity as the shareholder vote to merge APE and AMC common stock has been approved.
The proposals, including AMC’s 1-for-10 reverse stock split, have been temporarily delayed until further notice.
AMC shareholders have raised concerns about Antara Capital, who was until now AMC’s largest institutional shareholder.
Like Wanda Group in 2021, the institution has dragged AMC’s share price down every time it sold shares.
One thing we saw happen after Wanda Group sold all their shares is it gave retail investors runway.
As AMC Entertainment stock ran up, there was no more heavy selling which meant shares had breathing room to keep rising.
Whether history repeats itself or not is something time will certainly tell.
Latest AMC Stock News 2023
Analyst firm Benchmark raised its growth estimates for AMC Entertainment Friday, citing better-than-expected domestic box office performance.
AMC will be reporting its fiscal first-quarter results before market open on May 5.
Benchmark now estimates that AMC will report first-quarter revenue of $912 million, up from its prior estimate of $831 million.
Analysts surveyed by FactSet are looking for first-quarter revenue of $930 million.
“Domestic box office exceeded our expectations,” Benchmark analyst Mike Hickey wrote in a note released Friday.
The analyst firm also raised its estimate for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a loss of $37 million from its prior estimate of an $86 million loss.
Analysts surveyed by FactSet are looking for an EBITDA loss of $33 million.
Benchmark currently has a hold rating for AMC Entertainment.
Benchmark’s Hickey expects AMC to raise capital as soon as the settlement is resolved.
“We think AMC will immediately tap the capital markets on a successful transaction,” he wrote. “The capital raise would likely be used to provide relief to AMC’s significant net debt obligations.”
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