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AMC Stock Continues Rally As Movie-Theater Chain Updates Credit Strategy

Dow Jones04-23

  • AMC shares have gained four of the past five days

Shares of AMC Entertainment Holdings Inc. rose 8.2% on Monday as the company's stock rally continues.

In an SEC filing after market close Friday, AMC $(AMC)$ announced that it is not renewing a $225 million senior secured revolving-credit facility. AMC has paid off any remaining obligations related to the credit facility, which was set to expire Monday, the company said.

"The company has entered into a new letter of credit facility in order to continue to provide letters of credit in the ordinary course of business," the company said in the filing.

AMC's stock registered its best two-day streak since October last week on no apparent news, but pulled back before resuming its rally on Friday.

AMC shares ended Friday's session at $3.16, their highest close since March 28, when they closed at $3.72, according to Dow Jones Market Data. The stock, which hit a series of record lows earlier this year, has gained four of the past five days.

On Thursday, analyst firm Wedbush Securities lowered its price target for AMC but said that it is well-positioned to grow its market share. Wedbush analyst Alicia Reese pointed to the company's footprint of large-format screens and the current demand for concert movies.

Short interest as a percentage of AMC's public float of shares is 16.06%, according to the latest exchange data. The stock traded on volume of 26.71 million shares Friday, compared with its 65-day average of 15.12 million shares.

AMC's stock is trading well below its all-time closing high of $44.56, which occurred on June 2, 2021, during the meme-stock frenzy, according to Dow Jones Market Data.

Shares of the movie-theater chain and original meme stock are down 44.1% in 2024, compared with the S&P 500 index's SPX gain of 5.1%.

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  • Well , this counter can consider buy buy ??? Advised? Thanks 
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