Two institutional investors have now increased their positions in AMC Entertainment (NYSE:AMC) stock prior to its highly anticipated $APE conversion.
According to FactSet data, Jane Street Capital and National Bank Financial have increased their positions in AMC Entertainment Holdings Inc,.
Trading firm Jane Street Capital increased its AMC position to just under 6.1 million shares, after acquiring just over 5.8 million shares in the second quarter, and now holds just under 1.2% of shares outstanding, FactSet data show.
National Bank Financial increased its position to just over 3.2 million shares, after acquiring just under 3 million shares, and now has just over 0.6% of shares outstanding.
Other institutions such as Susquehanna Financial Group, lowered its position to just over 2.2 million shares, after selling just over three million shares and now has just over 0.4% of shares outstanding.
AMC’s top institutional holder is The Vanguard Group Inc., with almost 9.6% of shares outstanding, followed by BlackRock Fund Advisors , with almost 3.6%, according to FactSet data.
The top mutual fund holders of AMC are the Vanguard Total Stock Market ETF VTI, with just over 3.1% of shares outstanding and the Vanguard Small Cap Index Fund , with almost 2.6% of shares outstanding, reports MW.
The movie theatre company’s CTB, or Cost to Borrow, has now surged to over 1,000% again, which is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.
Despite growing fundamentals, AMC Entertainment continues to be a target for Wall Street short sellers.
What we would like to see is Wall Street get their asses handed to them like we saw in 2021.
“Our ongoing progress is obvious and ever so encouraging.
Combining AMC’s commitment to innovation with a notable increase in both the number and quality of movie titles from our studio partners, movie theatres are once again captivating audiences and driving attendance back to AMC theatres.
AMC theatres across the globe welcomed more than 66 million guests in the second quarter of 2023, our highest quarterly attendance number since the fourth quarter of 2019,” said CEO Adam Aron.
Also Read: Goldman Sachs Gives AMC a New Price Target of $175
Adam Aron Speaks on the Importance of Raising Cash This Year
AMC shareholders have once again saved the world’s largest movie theatre chain in the world.
The company’s approved dilutive proposals will allow AMC Entertainment to raise enough cash to withstand another apocalyptic event, as seen with the pandemic.
“AMC must be in a position to raise equity capital. I repeat, to protect AMC’s shareholder value over the long term, we MUST be able to raise equity capital.
That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025.
If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of our debt (which is required of us beginning as early as 2024.)
The risk of financial collapse is not whimsical. Cineworld/Regal, the second largest movie theatre chain in the world, fell into bankruptcy and their equity holders were essentially wiped out. Bed, Bath and Beyond which was viewed as the third most watched meme stock, also fell into bankruptcy and their equity holders also were essentially wiped out.
Fortunately, at AMC, we have been much smarter, much more agile and much more skillful. We have risen to every Covid challenge heretofore, and I have every confidence in our continued ability to successfully navigate through these complicated times,” Adam Aron said in a July letter.
Hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC’s new APE conversion as the proposed rule is expected to go into effect next Thursday.
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