AMC's stock continues rally, registering best two-day stretch since October

By James Rogers

AMC's stock earlier this week registered its biggest daily percentage gain since February

Shares of AMC Entertainment Holdings Inc. continued their rally Wednesday, climbing 9.6% after ending Tuesday's session up 10.1% for their biggest gain since February.

AMC's stock (AMC), which snapped a four-day losing streak Tuesday, is rising on no apparent news. The stock is up more than 18% over Tuesday and Wednesday, its best two-day stretch since the two days ending Oct. 9, 2023, when it rose 18.31%, Dow Jones Market Data show.

Short interest as a percentage of AMC's public float of shares is 16.06%, according to the latest exchange data. The stock is trading on volume of 25.23 million shares, compared with its 65-day average of 14.8 million shares.

Related: AMC CEO Adam Aron says 'it's inconceivable' that the movie-theater chain would file for chapter 11

AMC shares have hit a series of record lows recently, falling 51.3% in 2024. The stock is down more than 99.14% from 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.

Last week, AMC Chief Executive Adam Aron said that chapter 11 bankruptcy is "inconceivable" for the movie-theater chain and original meme stock, despite the turmoil of the past few years.

The pandemic hit AMC hard, forcing the closure of movie theaters across the U.S. in March 2020. The company went from beleaguered pandemic victim to meme-stock phenomenon in 2021, and it continues to face speculation about possible bankruptcy. However, such speculation is wide of the mark, according to Aron.

Related: The future looks 'cautiously optimistic' for AMC, Benchmark says

The movie-theater chain is on a mission to tackle its debt load. In December, AMC completed an at-the-market equity offering, raising approximately $350 million as it attempts to reduce its debt burden.

AMC's total debt, including finance leases, at the end of 2023 was around $4.56 billion, down from $5.01 billion at the end of 2022, the company said in its fourth-quarter earnings release.

Last month, AMC filed to sell up to $250 million in stock.

-James Rogers

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04-17-24 1704ET

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