AMC Stock Drops toward 8-Month Low after CEO Sells More Shares, but Says He's Finished

Dow Jones2022-01-14

CEO Adam Aron discloses sale of $7.1 million worth of AMC stock on Tuesday, and has sold $42.1 million worth over the past 3 months

Shares of AMC Entertainment Inc. slumped Thursday toward a near eight-month low after Chief Executive Adam Aron disclosed the sale of more shares, but also tried to reassure investors by saying he was done selling.

According to a Form 4 filing with the Securities and Exchange Commission late Wednesday, Aron sold 312,500 shares in the open market on Jan. 11, as part of prearranged, Rule 10b5-1 trading plan. The shares were sold in multiple transactions ranging from $22.16 to $23.74, or at a weighted average price of $22.846, as Aron raised about $7.14 million.

The movie theater operator's stock $(AMC)$ had traded in an intraday range that day of $22.09 to $23.75, before closing at $22.79.

He reminded investors that in August of last year, he said he would be selling some of his shares near the end of the year, but said those trading decisions were "out of my hands."

"Those sales are now all finished," Aron tweeted overnight.

Don't miss: AMC CEO Adam Aron's New Year's resolution: Refinance debt at lower rates.

Also read: Opinion: Adam Aron's resolution to refinance AMC's debt might put his love affair with 'Apes' at serious risk.

Aron's sold a total of 1.25 million shares at a weighted average price of $33.693 to raise $42.12 million over the past three months, including 312,500 shares sold at $30.867 on Dec. 7 and 625,000 shares sold at $40.529 on Nov. 9.

The stock took a 5.4% dive in afternoon trading, putting it on track for the lowest close since May 26. It has now plunged 52.2% since Nov. 8, the day before Aron started selling shares, while the S&P 500 index has eased 0.3% over the same time.

Wednesday's filing showed that Aron still owned 205,086 Class A shares, but that didn't include 780,915 shares issuable based on continued service and 1,316,759 shares issuable upon attainment of performance goals, the total of which could be valued at roughly $52.1 million at current prices.

"I still own or plan to vest in 2,302,760 AMC shares," Aron tweeted. "I am in!"

The stock has tumbled 43.3% over the past three months, but has still rocketed 886.3% over the past 12 months.

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Comments

  • Darrs21
    2022-01-14
    Darrs21
    N
  • Kehao
    2022-01-14
    Kehao
    Yo
  • Jj1985
    2022-01-14
    Jj1985
    Yeah he is finished. 
  • 慢的老人
    2022-01-14
    慢的老人
    So AMC's CEO is selling his own shares at a huge profit while the Apes continue to HODL? That doesn't sound right.
  • JLCH
    2022-01-14
    JLCH
    yo
  • BerryNat
    2022-01-14
    BerryNat
    Hopefully that means it goes up tonight.
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