AMC Entertainment Shares Drop, Despite Strong Earnings, Strike Deal, After $350 Million Stock Offer
deadline.comAMC shares plunged today despite record quarterly earnings as the giant theater chain filed with SEC to sell up to $350 million worth of stock — offsetting any bump that could been expected from solid financials and an end to the actors’ strike.
Shares were trading up this morning pre-market but reversed course when the filing hit the wire. The stock of the biggest global exhibitor is off its lows for the day but still down nearly 12% in late morning trade.
More shares out in the market dilutes the holdings of current stockholders, many of them individual retail investors who have repeatedly pushed back on the company issuing new stock.
It’s only able to do so now following a ruling by Delaware Chancery Court in convoluted, overlapping suits. The company swung to profit on a 45% jump in revenue, blowing past Wall Street estimates and outperforming the broader industry.
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