AMC’s stock continues its slide, on pace to extend losing streak to three days
Shares of AMC Entertainment Holdings Inc. continued their slide Thursday, falling 5.1% and on pace to extend their losing streak to three days.
AMC’s stock
AMC,
which is currently trading around $4.66, would also set another record-low close if its slide continues. The stock ended Wednesday’s session down 2.6% at $4.91, an all-time low, according to Dow Jones Market Data, based on available data going back to Dec. 18, 2013. AMC’s stock has hit a series of record lows recently, reflecting the demise of the movie-theater chain’s meme-stock status.
This is a far cry from AMC’s meme-stock heyday: The stock is down more than 98% from its all-time closing high of $339.05 on June 2, 2021, Dow Jones market data show.
Related: AMC’s stock hits another record-low close, extends losing streak to two days
The company’s shares are down eight of the past nine days. The stock is also down three consecutive days, falling more than 10% over this period, Dow Jones Market Data show.
AMC’s stock is down 89.4% in the last 52 weeks, compared with the S&P 500 index’s
SPX
gain of 19.4%.
Three years ago, the movie-theater chain went from a beleaguered pandemic victim to a meme-stock phenomenon. Boosted by the WallStreetBets crowd on Reddit, AMC used a steep rise in its share price to tap into equity and debt markets, raising $917 million in January 2021.
Related: This is what we can expect to see from meme stocks in 2024
Since then, AMC has taken aim at its debt burden, which was more than $5 billion in 2022. That year, AMC launched its AMC Preferred Equity Unit special dividend and in 2023 completed the conversion of the APEs into AMC common stock, along with a reverse 1-for-10 split of common stock.
In December, AMC completed its latest at-the-market equity offering, raising approximately $350 million.
In a regulatory filing last week, AMC said that between Dec. 28 and Dec. 29, 2023, the company entered into a series of privately negotiated exchange agreements to issue nearly 3.26 million shares of Class A common stock in exchange for $22.5 million of its notes due in 2026. The common stock issued had an implied value of $6.94 per share, according to AMC. “The company may engage in similar transactions in the future but is under no obligation to do so,” AMC said in the filing.
Related: AMC CEO sends Taylor Swift ‘eternal gratitude’ as Eras Tour concert film makes history
On Sunday, AMC Chief Executive Adam Aron expressed the movie-theater chain’s “eternal gratitude” to Taylor Swift after the singer-songwriter’s concert film, for which AMC served as the distributor, broke another record.
Variety reported Sunday that “Taylor Swift: The Eras Tour” has earned more than $261.6 million globally, making it the highest-grossing concert and documentary film in history, surpassing “Michael Jackson’s This Is It.”
Of seven analysts surveyed by FactSet, four have a hold rating and three have a sell rating for AMC.
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