Helios and Matheson Analytics Inc (NASDAQ:HMNY) stock was up on Tuesday after Citadel Securities revealed its investment in the MoviePass owner.
Citadel Securities announced that it now has a 5.4% stake in Helios and Matheson Analytics Inc. This makes it the second largest holder of HMNY stock. However, the investment may not be enough to keep confidence in Helios and Matheson Analytics Inc up.
Helios and Matheson Analytics Inc has seen its stock drop by roughly 467% since the start of 2018. Some of the concerns that investors have with HMNY is its shrinking cash reserves. The company is currently sitting on roughly $15.5 million, but says its business costs ever month come in at $21.7 million.
Helios and Matheson Analytics Inc stock has been incredibly volatile as the company continues to report news that shakes its stance in the market. This includes its most recent earnings report missing out on estimates. Despite this, the company still sometimes see gains from its MoviePass announcements.
As it is now, Helios and Matheson Analytics Inc won’t likely remain operating through its own reserves of cash. Instead, leaders of the company have hinted at the idea of continuing the business with its $300 million credit line.
Helios and Matheson Analytics Inc’s MoviePass has been making waves in the movie theater business over the last few months. Its monthly subscription allows customers to see an unlimited number of movies for just $10 a month. This has put a strain on its relationship with theaters that want to see more from ticket sales.
HMNY stock was up 12% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.