AMC Soars as Company Sells $230 Million in Stock to Hedge Fund

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July 25, 2024 2:51 PM

(GMT+2)

AMC Entertainment Holdings Inc. took advantage of a surging stock price last week to sell shares to a hedge fund for $230.5 million, it disclosed on Tuesday, news that pushed its stock even higher.

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The hedge fund that brought the shares, New York-based Mudrick Capital Management LP, was a winner too. It had paid a premium to Friday’s closing price but punctually turned around and sold for a profit, relieving all 8.5 million shares it received in the deal.

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AMC’s share price skyrocketed as high as $33.53 before ending the session at $32.04, a 23% leap. The movie theatre chain’s stock price is up more than 1,400% for the year, including a raging 116% rise last week.

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AMC has been popular among individual investors on social media platforms such as Reddit, and the stock price was one of the original meme stocks that surged during the chaotic rally in January.

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