Wedbush has now upgraded AMC Entertainment (NYSE:AMC) from ‘underperform’ to ‘neutral’ with analysts currently looking at a 17.98% upside, Nasdaq reports.
On Thursday, AMC stock fell more than -26% while APE fell nearly -18% despite the fundamental upgrade.
Investors are sharing a mix of emotions on Twitter, urging CEO Adam Aron to release a public statement on the stock’s performance, see below.
Total shares owned by institutions increased in the last three months by 10.96% to 154,378K shares, according to Fintel data.
However, “the put/call ratio of AMC is 0.49, indicating a bearish outlook,” says Nasdaq.
Exact definitions vary between brokerages, but an underperform rating is worse, in general, than “neutral” but better than “sell” or “strong sell.”
Neutral is assigned to a stock that is expected to deliver results that match the broader market.
Underperform is a stock that will likely perform slightly below par: seeing greater losses in a down market and below-average gains in an up market, per Investopedia.
AMC’s reverse stock split has left shareholders with 10x less shares with the company stock trading 10x higher.
Up next is the conversion of APE shares into AMC common stock which will occur on Friday August 25.
The litigation settlement will then take place on Monday, August 28.
AMC Entertainment has now secured the ability to raise billions of dollars from retail investors despite plunging share prices.
Investors have once again saved the company, but at what cost?
AMC’s upgrade from underperform to neutral is a positive outlook, but unless the news translates over to the company’s stock price, investor confidence is at a standstill.
What are your thoughts on the movie theatre’s current state?
Leave your thoughts in the comment section down below.
AMC Speaks on Short Sellers Covering Prior to New Conversion
AMC Entertainment is answering questions on short sellers covering prior to its newly approved conversion proposal.
Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?
According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.
However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”
How will short sellers be affected by the Litigation Settlement Payment?
“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms
governing stock borrowing arrangements.”
AMC’s reverse stock split will go into effect on Thursday, August 24.
The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.
The litigation settlement will then take place on Monday, August 28.
Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?
AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.
Also Read: Will APE Now Trigger an AMC Short Squeeze Soon?
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About The Author
More bullshit! When APE was distributed, AMC shares dropped 48 %. Adam Aron has done fuck all for his shareholders. Stop the corruption Mr. CEO. Give a shit.
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