AMC Entertainment (NYSE:AMC) stock is on the rise today with some big news. The company is seeing voting power distributed more equally as its largest investor completes a selloff that will eliminate holders with more than 10% of shares entirely from the equation.
Dalian Wanda, a Chinese conglomerate responsible for buying AMC in 2012 and bringing it public, is stepping back and putting the shares in the hands of a large pool of buyers. Wanda sold most of its huge stake in the company in the last couple weeks, reducing its position to just 10,000 shares.
The move is part of a broader strategy for Wanda which sees the company stepping back from its overseas investments. The company cites a heavy debt from overseas buying as the reason behind the controlled sale, and will resume its relationship with AMC through a cooperation agreement.
AMC Stock Lifts Off Thanks to Wanda Sale, Successful Weekend
The sale’s announcement earlier in March preceded a jump in price. The new announcement of its completion is spurring further growth today.
But also sending AMC stock up today is news of a highly successful box office weekend in the United Kingdom. The weekend of May 17 saw 300,000 ticket sales, showing a high demand in return to theaters. The company is also anticipating a huge Memorial Day weekend in the United States, citing the ongoing vaccine rollout and the lowest rate of new cases in nearly a year.
The pair of stories is sending AMC stock soaring today. AMC shares are up nearly 13% on today’s session, exchanging hands at $13.64.
The healthy climb is exciting investors, so much so that investors have sent #AMCFORLIFE to the top of Twitter today. AMC shareholders are looking to get more people on board with the stock with the news.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
