Often times when institutions buy a specific stock, it’s a strong indicator of their belief in the stock.
Whether that be short term or long term, it’s definitely bullish sentiment.
I’ve been saying for quite some time now that AMC has reached a new floor, and I think institutions know this too.
Let’s get right into it.
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Raise your hand if you’re getting tired of seeing AMC trade in the mid to high $30 level range?
I’m not, and I’m going to tell you why.
This consolidation period has allowed new retail investors to establish a position in AMC, and long-term holders like myself to add to our positions.
It has also given institutional investors a cooling period to study this new level of resistance.
We’re seeing a pattern here.
Institutional investors were bulking up on the stock before the big runup back in June.
Here are 2 institutions that just bought more AMC stock.
#1. State of New Jersey Pension Fund
The State of New Jersey Pension Fund has filed a 13F-HR form disclosing ownership of 296,465 AMC shares from it’s previous 229,643 back in July.
That’s a 66,822 share difference, or 29.10%.
The file date is of last week, October 27th.
This institution provides active employees, retirees, and employers with pensions and health benefits.
I feel like an institution who provides this much value to their state and buys this momentum stock, is quite significant.
Whether they’re looking at AMC for a short squeeze or as a long-term investment, they’re sending signals money is to be made here.
As if we don’t know that, right?
#2. First Trust Portfolios LP
A more recent financial institution that just loaded up on AMC stock is First Trust Portfolios LP.
First Trust Portfolios LP has been offering investment products and advisory services since 1991.
“When it comes to investing, it is critical to know what you own.” – First Trust Portfolios LP.
I’m going to have to agree with that 💯.
This financial institution just added 617,952 shares of AMC stock to their portfolio.
The filed date was November 1st of this month.
They now own a total of 762,328 shares of AMC Entertainment stock.
That means they owned 144,376 shares before going heavy!
And just from experience, you don’t go heavy unless you have a strong conviction in an asset.
So, What Does All This Mean?
These aren’t the only institutions buying AMC stock, they’re merely the most recent and biggest buyers at the moment.
We’re starting to see other financial institutions increase their positions at a smaller scale as well.
- Royal London Asset Management | 6,779 increase filed on November 2nd.
- Asset Management One Co. Ltd, | 8,292 increase filed on November 2nd.
- Nordea Investment Management | 1,638 increase filed on November 1st.
These numbers look small compared to NJ Pension Fund and First Trust Portfolios.
But the list of recent financial institutions buying AMC stock goes on and on.
Very few institutions have cashed out.
And if you look at it’s previous history, you’ll find that although quite a number of financial institutions took profits back in May, June, and July, institutions have begun to buy AMC stock at it’s current share price level.
It all comes down to pattern behavior.
Will AMC Have Another Massive Upswing?
In my opinion, the pattern behaviors are all too familiar to think otherwise.
When AMC set a new floor after its runup to $20, it consolidated and financial institutions bulked up on the stock before its next major run to $70 per share.
Well, AMC has set a new floor again and we’re starting to see institutional investors are buying and holding the stock again.
What’s it going to take for retail to see another massive upswing?
Will the third runup be bigger than the second?
I certainly think so.
I’d love to hear your thoughts below.
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This is great news as far as short term price stimulation, and FOMO, but I would imagine it is safe to assume these institutions will likely paperhand out pretty early and take profits. I wonder how that will impact pricing – I would imagine it will cause some significant dips on the way up. Something to remember so that when we see it start to happen we know exactly what it is.
It’s possible they do leave the party early, but it’s good to see whales buying in again!
January, short squeeze…? History repeats itself… YOLO!