AMC stock more than doubles amid meme craze as company completes $250 million

a5c32b40 11ec 11ef ab4b 01ee30463f77


AMC Entertainment (AMC) is cashing in on the revival of the meme stock trade.

The struggling theater chain raised $250 million of “new equity capital” through the sale of 72.5 million shares on Monday, per an SEC filing.

The completion of the equity offering, which was initially launched on March 28, came as the meme trade roared back into action on Monday. After the reemergence of Keith Gill, also known as “Roaring Kitty,” whose bull case on GameStop ignited the meme stock rally back in 2021, sent shares of GameStop (GME) soaring in early action on Monday, AMC quickly spiked in sympathy.

At the market close on Monday, AMC stock had risen more than 78% while GameStop had rallied nearly 75%. The moves higher continued, with both AMC and Gamestop shares roughly doubling in price.

The AMC shares were sold at $3.45 per share, per the SEC filing. By 8:30 a.m. on Tuesday, shares were trading hands at as much as $10.70.

AMC has struggled since the pandemic amid a slow return to theaters from moviegoers. In the company’s most recent quarter, reported on May 8, AMC produced revenue of $951.4 million, down from $954.4 million in the same quarter a year prior. The company’s losses improved, however, with AMC producing an earnings per share loss of $0.62 in the first quarter, a narrower loss than the $1.71 loss seen in the same quarter a year prior.

Wedbush analyst Alicia Reese wrote in a research note on May 9 that the company was focused on “alleviating” its $4.6 billion in debt outstanding. The debt, Reese wrote, “overshadowed” any positive factors happening underneath the surface during the prior quarter.

“AMC has an opportunity to drive revenue growth from its European circuit with theater upgrades that would boost per-screen averages,” Reese wrote. “However, it is unlikely to do so until it works through balance sheet right-sizing over the next two years.”

AMC movie theater, building exterior, New York City, New York, USA. (Photo by: GHI/UCG/Universal Images Group via Getty Images) (UCG via Getty Images)

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

Click here for in-depth analysis of the latest stock market news and events moving stock prices.

Read the latest financial and business news from Yahoo Finance





This article was originally published by a finance.yahoo.com

Read it HERE

Share

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *