![]() This is considered a way to circumvent the limitations that shareholders imposed on the Board of Directors to prevent them from diluting existing owners through at-the-market offerings. One AMC preferred equity unit was issued for every common stock in circulation. Recently, AMC Entertainment announced a special dividend consisting of preferred shares that may be converted into common ones if shareholders approve this move. It is important to keep in mind that the days to cover metric back in the first half of 2021 was 1 or less, but that did not prevent an AMC short squeeze. Even though this is not a high number, it is still high enough to sustain a short-term uptick in case the price rises significantly in a relatively short period. Meanwhile, the number of days that would take short sellers to cover their total exposure is 2.1. ![]() However, the percentage of shares shorted compared to AMC’s total float still stands at 8.40%, as per data from MarketBeat. On 31 July, 95.09 million shares of AMC were sold short resulting in a 1.1% decline compared to the previous period as of 15 July, and 6.6% decline from 30 June. AMC stock short squeeze: Short interest headed downwards in Julyĭespite the recent uptick in price, the stock’s short interest in July continued the downtrend compared to previous dates. AMC has been unable to make a higher high since then. The situation exposed traders who were on the wrong side of that bet to severe losses.Īfter hitting that all-time high, the price action continued to be volatile, but the stock’s value progressively deflated and eventually went on a downtrend. Only a few days after, on 15 June, the value of the shares that have been shorted spiked to $5bn. These positions were worth around $2.67bn back then. ![]() In addition, brokerage firms had to buy the stock in bulk to hedge their exposure to the short-dated options that these traders had been purchasing.Īs many as 102.3 million shares of AMC Entertainment were sold short by, according to data compiled by MarketBeat. Only a few months after, in May 2021, AMC stock soared from around $9 to as much as $70 as coordinated efforts from retail traders managed to push the price to a point that forced short sellers to cover their positions. That prompted an initial short-squeeze event between January and February 2021, propelling the price to around $20. However, shortly afterwards, trading volumes and demand for short-dated options on AMC Entertainment stock spiked. As a result, the firm’s finances suffered as sales and attendance plummeted.ĭuring this period, the share price of AMC dived to as low as $1.90 – roughly three-quarters of AMC’s pre-pandemic value. AMC short squeeze explained: Why is this a possibility?ĪMC Entertainment became a target for short sellers during the pandemic as large gatherings were banned to slow down the spread of the virus. The company employs over 25,000 people and is headquartered in Leawood, Kansas. He has been at the helm since January 2016. The top two revenue segments for the firm are attendance and food and beverage with the second being the most profitable for AMC Entertainment.Īdam Aron is AMC’s CEO. ![]() The US market is the most important for AMC as it accounted for three-quarters of its revenues during this same period. During the first half of 2022, the company attracted 98.2 million attendants and produced revenues of $1.95bn. Since then, the company has grown to become the largest movie theatre operator in the world with a total of 947 venues and over 10,000 available screens. The company was founded by the Dubinsky brothers who started their journey by purchasing a theatre in Kansas City. What is AMC Entertainment? Company overviewįounded in 1920, AMC Entertainment is a movie theatre chain with operations in multiple corners of the world but with a predominant presence in the United States.
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