Financial institutions continue to bulk up on AMC shares.
AMC stock has had a massive discount in January, and it seems retail investors aren’t the only ones taking advantage of this opportunity.
According to Ortex data, AMC’s short interest is over 20%.
That’s more than enough short interest to send AMC stock into the hundreds of dollars per share level.
When AMC’s short interest dropped from 20% to 14% back in June the price rose to $72 per share.
Are 100m+ volume days on the horizon?
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AMC daily volume remains healthy
Despite AMC’s downtrend in price, the daily volume remains healthy hovering above 45 million on average.
AMC’s price plummet can be explained here, where the data shows discrepancies between buy and hold ratio vs the price decline.
AMC’s daily volume average is higher than that of Tesla stock, GME stock, Amazon stock, and Robinhood stock being some of the most popular tickers.
As for retail investors, the community sentiment behind AMC is very strong.
So far, more than 90% of the community on Twitter says they’ve been buying the dips.
Be sure to place your vote before the poll is over.
A powerful duo of AMC buyers
Both retail investors and financial institutions are buying AMC stock at today’s current prices.
AMC is too good in a position to not buy the stock, especially considering how much innovation the company is undergoing.
Big shorts are in a tough situation as they eventually have to close their short positions.
And when they do, AMC’s share price will begin to soar again.
Data shows AMC shareholders are not selling their stock but rather buying and holding it.
It’s only a matter of time before bigger shorts get squeezed from their short positions in AMC stock.
Financial institutions buying AMC stock
Here’s a list of the 15 financial institutions who bought AMC stock in January of 2022, via MarketBeat.
Many of these financial institutions buying AMC stock have millions of dollars in market value.
About 60% of the companies who increased their positions in AMC in January alone are holding more than 100,000 shares.
Since AMC’s earnings call figures have improved every quarter since last year, I estimate more financial institutions will continue to increase their positions leading up to this year’s Q4 announcement in March.
Meanwhile, retail investors continue to buy and hold the stock to ignite a short squeeze.
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