AMC (AMC) stock has been in a steady decline so far this year.Thank you for reading this post, don't forget to subscribe!
The theater chain hit a new all-time low on Friday, reaching $5.08 per share during the session. Shares have fallen more than 15% in the last four sessions.
The stock is falling as the company continues to issue shares, diluting investors’ stake amid rising debt.
Earlier this week AMC said it had “entered into a series of privately negotiated exchange agreements under which it agreed to pay off notes due 2026” in exchange for $22,500.00 worth of $3.25 million. Has issued or will issue more Class A stock.
AMC said it “may engage in similar transactions in the future but is not obligated to do so.”
Last November, AMC filed to offer up to $350 million in stock. Shares fell by 20% on this news.
The offering follows an announced sale of 40 million shares in September to “increase liquidity, repay, refinance, redeem or repurchase its existing indebtedness” and for general corporate purposes.
The stock has fallen more than 80% since August 2023, when it traded just north of $40 a share.
This photo illustration shows the AMC logo displayed on a smartphone with a Barbie stock graph in the background on the screen. On 8 August 2023 in Brussels, Belgium. (Photo illustration by Jonathan Ra/Nurfoto via Getty Images) (Nurfoto via Getty Images)
A look at the stock’s meme-era bonanza days shows how far the stock has fallen from its all-time high of $339.05 in early June 2021.
AMC is expected to announce fourth-quarter earnings on January 28. The company beat its third-quarter revenue estimates last year after the hit movies “Barbie” and “Oppenheimer.”
Ines Ferre is a senior business reporter at Yahoo Finance. Follow him on Twitter @ines_ferrre,
Click here for in-depth analysis including the latest stock market news and stock movement events
Read the latest financial and business news from Yahoo Finance