What's Going On With AMC Entertainment Stock Wednesday?

Zinger Key Points
  • AMC shares are more than 99% below their all-time highs.
  • AMC shares are up more than 7% Wednesday morning after rising more than 10% on Tuesday.

AMC Entertainment Holdings Inc AMC shares are trading higher Wednesday, bouncing back from the selling pressure the stock has faced in recent weeks. Here’s a look at what’s going on.

What To Know: AMC shares are more than 99% below their all-time highs. The selloff in AMC stock accelerated at the end of March after the company announced an at-the-market offering program to sell up to $250 million of its common stock.

AMC said at the time that it intends to use the net proceeds to bolster liquidity and to repay, refinance, redeem or repurchase its existing indebtedness.

Following the offering, AMC shares fell to new lows and bankruptcy concerns climbed, but at the 2024 CinemaCon in Las Vegas last week, AMC CEO Adam Aron said a restructuring is not in the cards for AMC.

“Personally, I think it’s inconceivable that AMC would have to restructure like Regal Cinemas did and file for Chapter 11,” Aron said.

Aron highlighted anticipated box office strength in 2025 and 2026 and noted that AMC has enough cash to get through 2024. Last quarter, AMC said it had $884.3 million in cash and cash equivalents.

AMC is not due to report financial results again until next month. Analysts are currently anticipating a loss of 82 cents per share and quarterly revenue of $839.602 million, according to estimates from Benzinga Pro.

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How To Buy AMC Stock

By now you're likely curious about how to participate in the market for AMC – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of AMC, which is trading at $2.83 as of publishing time, $100 would buy you 35.34 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

AMC Price Action: AMC shares were up 7.35% at $2.92 Wednesday morning after rising more than 10% on Tuesday, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.

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