- The stock of Kansas City-based movie exhibition company surged over 7 percent on Monday.
- With the CDC’s latest guidelines on masks and social distancing, theatres could open to their full capacity.
- AMC raised approximately US$428 million as it sold 43 million shares.
The stock of AMC Entertainment Holdings Inc (NYSE:AMC) was up 7.47 percent to US$13.95 at the market close on Monday, May 17. The stock has gained 534 percent year to date.
The Kansas City-based AMC is a movie exhibition company with approximately 950 theatres and 10,500 screens globally.
AMC’s stock has a 52-week range of US$1.91 and US$20.36. Its shares surged earlier in the year along with video game retailer GameStop as retail investors rushed to add them to their portfolios.
CDC’s Latest Guidelines On Masks, Social Distancing
AMC is among the hardest-hit companies during the pandemic following the lockdowns and social distancing norms. In the first quarter, AMC operated its domestic theatres with limited seating capacities of between 15 percent and 60 percent. However, the Centre for Disease Control and Prevention’s latest update on masks and social distancing seems to have given a boost to AMC’s stock.
The CDC said on Thursday that those fully vaccinated can resume daily activities without masks or physical distancing. It also noted that the U.S. has fully vaccinated 35.4 percent of its population while at least one dose has been administered to 58.7 percent of its citizens.
The new guidelines on masks and distancing rules and the increasing vaccination rates could see movies house opening to the total capacity.
AMC Raises US$428M In Stock Issue
Last week, AMC raised approximately US$428 million as it completed the recently announced 43 million share sale at an average price of US$9.94 per share. CEO Adam Aron said AMC is in a stronger position to face the challenges ahead with the additional equity capital.
In the first quarter ended March 31, AMC saw its revenue fell 84.3 percent year over year to US$148.3 million. AMC was operating 99 percent of its domestic theatres, at a capacity between 15 percent and 60 percent.
However, the company’s net loss in the quarter narrowed to US$567.2 million, or US$1.42 per diluted share, from US$2.18 billion, or US$20.88 in the year-ago quarter. AMC’s operating costs and expenses during the three months dropped to US$ 576.1million from US$2.93 billion.