AMC Insider Sales Rise As Memes Stock Rises Amid Retail Wave
A sign hangs outside an AMC theater on January 27, 2021 in Chicago, Illinois. AMC Entertainment shares more than quadrupled today as investors continued their buying frenzy on heavily shorted stocks.
Scott Olson | Getty Images
Insider selling activity to AMC Entertainment intensified like never before in the recent explosive rally led by enthusiastic retail investors.
A total of seven movie chain insiders have sold part of their stake since May 28, when the final stage began, selling in a wide price range of $ 27.42 to $ 62.67, according to InsiderScore’s analysis of regulatory filings. The stock price has more than doubled since that day, last trading at $ 57.70 apiece.
Six of them disclosed their sales on Friday after the market closed, and one disclosed in late May, according to InsiderScore.
“Obviously, AMC insiders don’t want to miss the opportunity to cash in stock-based compensation at valuations few people could have imagined just a few months ago,” said Ben Silverman. , Research Director at InsiderScore.
A total of nine insiders sold this quarter and three were cashed in the first quarter, according to InsiderScore. That compares to no seller in 2020 and just three from 2017 to 2019, InsiderScore said.
Notably, CEO Adam Aron, who joined the company in early 2016, has never sold his AMC shares.
AMC gained over 120% in June alone after advancing 160% in May, pushing its 2021 rally to over 2,600%. The action far surpassed its January high amid GameStop’s trading mania, hitting an intraday high of $ 72.62 last week.
Insiders are required to file their trades in a company’s common shares as well as derivative securities with the Securities and Exchange Commission within two business days of the trade date.
In the midst of last week’s massive rally, AMC managed to quickly sell 20 million shares in two separate deals and generated around $ 800 million in cash.
“Between those two deals, we raised over $ 800 million in cash, not to fill my pocket or for anyone who works at AMC, but to put that money into AMC’s treasury to strengthen AMC and let AMC do it. more good stuff, growing the business, ”Aron said in a YouTube video last week.
Aron reported he wants to sell up to 25 million more shares because the company is close to the limit on the number of outstanding shares authorized by its charter. From January to May, AMC made about $ 1.6 billion in cash from the sale of shares.
The company has approximately 501 million shares outstanding and approximately 46,000 shares remaining for future issuance.
– CNBC’s Sarah Whitten contributed to this story.
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