AMC Extends Its Losing Streak to Four Days With Another Record Low Close

AMC Entertainment Holdings Inc. experienced another record low close on Thursday, concluding the session at $5.30, marking a 5% decline. This downturn extends the stock's losing streak to four days, its longest since a five-day stretch that concluded on November 13, 2023.

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Once a meme-stock favorite and a prominent player in the movie-theater industry, AMC had already set a record low close of $5.58 at the end of Wednesday's session. The previous lowest closing record stood at $6.07, established on December 21, 2023, according to Dow Jones Market Data, with available data dating back to December 18, 2013.

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The current state of AMC's share price stands in stark contrast to its meme-stock zenith when it reached an all-time closing high of $339.05 on June 2, 2021.

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In a filing made on Tuesday, AMC disclosed a series of privately negotiated exchange agreements conducted between December 28 and December 29, 2023. During this period, the company issued 3,258,657 shares of Class A common stock in exchange for $22.5 million of its notes due in 2026. The implied value of the common stock issued was $6.94 per share, as stated by AMC. The filing also noted that while the company may engage in similar transactions in the future, there is no obligation to do so.

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This move is part of AMC's ongoing efforts to address its substantial debt, which exceeded $5 billion in 2022. In that year, AMC initiated its APE special dividend and, in 2023, completed the conversion of the APEs into AMC common stock, along with a reverse 1-for-10 split of common stock. In December, AMC executed its latest at-the-market equity offering, raising approximately $350 million. AMC CEO Adam Aron has consistently highlighted the company's liquidity challenges.

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Over the past 12 months, AMC's shares have witnessed a staggering 84.8% decline, a stark contrast to the S&P 500 index's gain of 23.1%. According to FactSet, out of seven analysts surveyed, four have a hold rating, while three advocate a sell rating for AMC. The company's financial trajectory and strategic moves will be closely monitored by investors and analysts as it navigates the challenges posed by its current financial situation and industry dynamics.