Going to the movies is fun and exciting again. But can it match the truly mind-bending action of AMC Entertainment (AMC)?
Starting the year 2021 at 2 a share, AMC stock skyrocketed 36-fold to an all-time high of 72.62 on June 2 that same year.
Then came 2022, a brutal year for meme stocks.
AMC stock started the year at 27.20 and ended at 4.07, a miserable loss of 85%. Since then, AMC’s drama in the stock market today has continued.
The current year saw a much better start for AMC. But after more than doubling from its year-end close of 4.07 during the first two months of 2023, shares slid hard after the company said March 14 that 87% of voting shareholders approved a plan to conduct a 1-for-10 reverse stock split.
That reverse split has yet to take place.
And on Friday after the close, AMC stock jumped as much as 100% to an after-hours session high of 8.80 following a CNBC report that the deal to convert its preferred equity units, nicknamed APEs, into common shares, got rejected by a Delaware court. Dow Jones reported that the court’s Vice Chancellor Morgan Zurn rejected an earlier settlement that would have allowed the conversion to go forward, quoting Bloomberg.
At the end of extended-hours trading Friday, AMC shares held up well, trading near 7.17 — good for a 76% gain year to date.
AMC has yet to comment on the ruling. The firm did not make any filings to the Securities and Exchange Commission over the weekend through Sunday afternoon.
AMC Stock Today: Is It A Buy Now?
On Friday, shares closed the regular session up 1.6% to 4.40. Quite a dramatic change from its action in June.
On June 23, AMC shares fell for a seventh session in a row, dropping 3.8% to 4.01, and marked the lowest close since January.
Meanwhile, the relative strength line, which graphs a stock or ETF’s day-to-day performance vs. the S&P 500, has trended lower. This means AMC is still underperforming the S&P 500. In recent days, the RS line is trying to bottom out.
Before Friday’s news after market hours, AMC stock saw its market value shrink to $2.2 billion on 519.2 million…