Shares of AMC Entertainment Holdings Inc. continued their downward trend on Thursday, with a 5.1% decrease. If the decline continues, AMC’s stock, currently trading at around $4.66, will reach another record-low close. During Wednesday’s session, the stock dropped by 2.6% to $4.91, marking an all-time low since December 18, 2013, according to Dow Jones Market Data.
AMC’s stock has been experiencing a series of record lows recently, signaling the downfall of its meme-stock status. In fact, it has plummeted by over 98% from its all-time closing high of $339.05 on June 2, 2021, according to Dow Jones market data.
Recent Losing Streak and Performance
Over the past nine days, AMC’s shares have experienced a decline in eight sessions. Furthermore, the stock has fallen for three consecutive days, resulting in a more than 10% decrease during this period, as reported by Dow Jones Market Data.
In the past 52 weeks, AMC’s stock has seen a significant drop of 89.4%, while the S&P 500 index has gained 19.4%.
AMC’s Memorable Rise and Current Situation
Three years ago, AMC Entertainment Holdings Inc. transitioned from a struggling pandemic victim to a phenomenon in the world of meme stocks. With the help of the WallStreetBets crowd on Reddit, AMC seized the opportunity presented by a sharp increase in its share price to raise $917 million through equity and debt markets in January 2021.
In summary, AMC Entertainment Holdings Inc.’s stock prices have faced ongoing challenges and set new record lows. The company’s position as a meme-stock has diminished significantly, and it now grapples with the struggle to regain momentum in the market.
Related Read: This is what we can expect to see from meme stocks in 2024
AMC Takes Aim at Debt Burden
AMC, the renowned movie-theater chain, has been actively addressing its significant debt burden, which exceeded $5 billion in 2022. As part of their efforts, the company launched the AMC Preferred Equity Unit special dividend in the same year, followed by the successful conversion of the APEs into AMC common stock in 2023. Additionally, a reverse 1-for-10 split of common stock was undertaken.
Successful Equity Offering Raises $350 Million
In December, AMC successfully completed its latest equity offering, generating approximately $350 million. The company employed an at-the-market approach for this offering.
Privately Negotiated Exchange Agreements
A recent regulatory filing reveals that between December 28 and December 29, 2023, AMC entered into a series of privately negotiated exchange agreements. These agreements resulted in the issuance of nearly 3.26 million shares of Class A common stock, valued at $6.94 per share, in exchange for $22.5 million of the company’s notes due in 2026. Notably, AMC stated that while similar future transactions may occur, the company is not obligated to engage in them.
Taylor Swift Concert Film Breaks Records
AMC Chief Executive Adam Aron expressed his “eternal gratitude” to Taylor Swift after her concert film titled “Taylor Swift: The Eras Tour,” distributed by AMC, achieved remarkable success. Reportedly, the film has grossed over $261.6 million globally, surpassing the previous record held by “Michael Jackson’s This Is It.” The accomplishment makes Taylor Swift’s concert film the highest-grossing concert and documentary film in history.
Analyst Ratings for AMC
According to a survey conducted by FactSet, seven analysts have provided their ratings for AMC. Four analysts recommend a hold rating, while three analysts have assigned a sell rating to the company.
