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AMC Entertainment Holdings Inc (NYSE: AMC) said Thursday it had completed a previously announced “at-the-market” equity sale for 43 million shares.
What Happened: The movie theater chain raised nearly $428 million in fresh equity capital before taking into account commissions and fees at an average price of $9.94 per share, as per a statement.
AMC CEO Adam Aron said, “Bringing in an additional $428 million of new equity capital will immediately buttress and fortify our liquidity profile.”
“The additional cash raised puts AMC in a stronger position to tackle the challenges and capitalize on the opportunities that lie ahead.”
AMC shares closed 23.74% higher at $12.77 on Thursday in the regular session and gained 0.78% in the after-hours session.
What s Going On With AMC Entertainment Today?
AMC Entertainment Holdings Inc (NYSE:AMC) is surging on Thursday as retail traders band together in an attempt to squeeze the stock higher.
What Happened: AMC reported first-quarter financial results on May 6. The company reported an earnings loss of $1.42 per share, missing the estimate for a loss of $1.26 per share. It reported quarterly revenue of $147.4 million, which came in below the estimate of $153.61 million.
“We started 2021 with the same conviction, drive and commitment that saw AMC successfully navigate the most challenging 12-month period in AMC’s century-long history, said Adam Aron, president and CEO of AMC. We finally can now say that we are looking at an increasingly favorable environment for movie-going and for AMC as a company over the coming few months.
AMC cashes in on Reddit-trading frenzy with $428 million share sale yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
AMC looks to be breaking out of what technical traders call a pennant pattern.
The stock crossed above the 50-day moving average (green) Thursday, and trades above the 200-day moving average (blue), indicating sentiment in the stock looks to be turning bullish.
The price may find support near each of these moving averages in the future.
Key AMC Levels To Watch
The stock looks to be nearing the end of a pennant pattern. The price has been condensed between narrowing highs and lows and could be ready to break out soon.
The Relative Strength Index (RSI) is nearing the overbought range of 70-100; the RSI sits at 63.53 at last check. The last time the stock broke out, it entered well into the overbought range.
(AMC) - AMC Options Traders Jump Into Short Squeeze Potential benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.