HomeTop MoversHere is why AMC Entertainment Holdings Inc (AMC) stock skyrocketed on Tuesday?

Here is why AMC Entertainment Holdings Inc (AMC) stock skyrocketed on Tuesday?

AMC Entertainment Holdings Inc (AMC) stock started the new week by gaining 22.76% in the normal trading session on Tuesday, June 1, 2021. AMC continued its surge in the after-market and further soared 17.60% to close the day at $37.68 per share. AMC shares have risen 503.39% over the last 12 months, and they have moved up 134.21% in the past week. Over the past three months, the stock has gained 258.79%, while over the past six months, it has soared 620.00%.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

$230 million of AMC Stock sold

On June 1, 2021, AMC took advantage of its soaring share price and sold its shares to a hedge fund for $230.5 million. New York-based Mudrick Capital Management LP bought the shares and sold all the 8.5 million shares for a profit.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


  Read More

Recent financial results

On May 6, 2021, AMC Entertainment Holdings Inc released its financial results for the first quarter ended March 31, 2021.

Q1 2021 financial highlights

  • AMC reported revenue of $148.3 million for Q1 2021 compared to $941.5 million in Q1 2020.
  • The company suffered a net loss of $567.2 million in Q1 2021 compared to $2176.3 million in Q1 2020. Net loss for basic and diluted loss per share was $1.42 in Q1 2021 compared with $20.88 net loss per basic and diluted share in Q1 2020.
  • Total operating cost and expenses were $576.1 million in Q1 2021 compared to $2.93 billion in Q1 2020.
  • Adjusted EBITDA was $294.7 million in Q1 2021 compared with $3.1 million in Q1 2021.
  • As of March 31, 2021, AMC had cash and cash equivalents of $813.1 million and total assets of $10.48 billion.

Why AMC stock is surging rapidly

There was a time when AMC was near bankruptcy but in December 2020, AMC avoided bankruptcy by raising over $900 million in December 2020. The company turnaround and successfully navigated the shutdowns and restrictions on theatres, and now any talk of an imminent bankruptcy for AMC is completely off the table.

The company’s market capitalization has now soared to more than $15 billion after it is recovering from the Covid-19 Pandemic but still the company has to deal with more than $5.5 billion in debt.

The financial numbers of AMC are a clear indicator that the trading is related to the future sentiment that rising numbers of COVID-19 vaccinations and economic reopening will drive consumers back to movie theatres.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

Conclusion

The AMC stock soared on Tuesday after the company raised $230 million by selling its stock and we can expect AMC to further gains in the coming days as well.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Must Read

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

100% free. stop anytime no spam