Stock Market Today, June 11: AMC Entertainment Jumps After Completing $150 Million Equity Offering
Written by Josh Kohn-Lindquist for The Motley Fool -> AMC Entertainment (NYSE:AMC) , which operates movie theaters worldwide, closed Thursday at $2.29, up 9.86%. The stock moved higher after news broke that AMC completed a $150 million at-the-market equity offering. Investors ar
AMC Entertainment (NYSE:AMC) , which operates movie theaters worldwide, closed Thursday at $2.29, up 9.86%. The stock moved higher after news broke that AMC completed a $150 million at-the-market equity offering. Investors are watching to see whether stronger box-office trends sustain the turnaround narrative. Trading volume reached 58.4 million shares, about 85% above its three-month average of 31.5 million shares. AMC Entertainment IPO'd in 2013 and has fallen 99% since going public.
The S&P 500 rose 1.73% to 7,393, while the Nasdaq Composite gained 2.54% to finish at 25,810. Within the entertainment space, industry peers Cinemark closed at $34.00 (+2.87%), and IMAX ended at $42.12 (-0.14%), underscoring mixed moves across theater-focused names.
While most equity offerings prompt a share price decline, AMC rose 10% today after completing a $150 million at-the-market equity offering. This raise added financial flexibility for the company, as it could play a small role in whittling down its $3.9 billion in long-term debt and funding its $3.4 billion in leases.
CEO Adam Aron spoke to this on X, posting, "It is particularly encouraging that the AMC share price has risen by more than 50% during this time, showing presumably that investors' confidence in a resurgent Box Office outweighs fears about dilution."
While true, investors should keep in mind that this equity raise is a mere 4% of its long-term debt balance, so plenty of work remains ahead. That said, AMC’s EBITDA has been positive for the last three years, so things are trending in the right direction as box office results keep improving.
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