- The shares of the company surged 95.22%.
- Intraday shares soared 127%.
- The shares rallied even after the market close.
The shares of American movie theatre chain AMC Entertainment Holdings Inc (NYSE:AMC) almost doubled in just one trading session as Reddit-driven frenzy continued to grip the retail investors.
The shares of the company closed at US$62.55 each in New York overnight, 95.22% higher than US$32.04 a day ago. In the intraday trade, the shares surged as much as 126.65%, as trading had to be halted multiple times.
The shares of the company continued to rally even in the after-market trading hours – rising 8.71% to US$68 a piece, by the time of filing this copy.
At the end of the trading, more than 745 million shares exchanged hands – almost double the shares outstanding. This, in a way, implies that every share was sold around two times in a single day. In the past 18 days, the company’s average volume stands at 251 million shares swapping hands daily. The shares of the company have surged 595% in these 18 days.
The company is of the belief that retail investors led the AMC rally, according to the reports. The movie theatre chain has taken over GameStop to become the most favourite stock on the WallStreetBets Reddit forum.
The company also seems to be making the most of this share price rally. Last week the company announced that it had filed a “shelf registration with the US Securities and Exchange Commission to permit the issuance and sale of up to 43 million shares of the Company’s Class A Common Stock from time to time through an ‘at-the-market’ equity offering program”. At the current market price, it could fetch the company as much as US$2.7 billion. This would be almost thrice the US$1 billion cash reserves that company has right now.
Interestingly, the company has around US$5 billion in debt on its balance sheet and US$450 million in deferred lease repayments.
The meme stock peer of the company – GameStop Corp (NYSE:GME) – witnessed a short squeeze of 400% in a single week in January – creating a Wall Street record. Meanwhile, the shares of GameStop were up 4.8%.