AMC Stock: 2 Big Reasons Investors Rally Behind #AMCFORLIFE Monday
AMC Entertainment (NYSE:AMC) is on the rise today with some big news. The company sees voting power spread more evenly as its biggest investor makes a sale that will completely remove holders with more than 10% of the shares from the equation.
Dalian wanda, a Chinese conglomerate tasked with buying AMC in 2012 and making it public, is stepping back and putting the shares in the hands of a large pool of buyers. Wanda has sold most of his huge stake in the company over the past two weeks, reducing his position to just 10,000 shares.
The move is part of a larger strategy for Wanda which sees the company withdraw from its overseas investments. The company cites heavy foreign purchase debt as the reason for the controlled sale and will resume relations with AMC through a cooperation agreement.
AMC’s stock takes off thanks to Wanda sale, a successful weekend
The sale announcement earlier in March preceded a price hike. The new announcement of its completion is stimulating growth today.
But sending the AMC stock today is also the news of a very successful UK box office weekend. The weekend of May 17 saw 300,000 ticket sales, indicating strong demand for returns in theaters. The company is also planning a huge Memorial Day weekend in the United States, citing the ongoing vaccine rollout and the lowest rate of new cases in nearly a year.
The pair of stories are skyrocketing AMC stock today. AMC shares are up nearly 13% on today’s session, trading hands at $ 13.64.
This healthy rise excites investors, so much so that investors have sent #AMCFORLIFE at the top of Twitter today. AMC shareholders are looking to convince more people to join the action with the news.
At the date of publication, Brenden Rearick did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.