From Jan. 2, or the first trading day of 2024, to May 10, shares of AMC Entertainment (NYSE:AMC) plunged lower by 52%. However, AMC stock is up about 70% from May 10 to today.
A strong box office isn’t behind the gains. AMC’s first-quarter revenue was $951.4 million compared to $954.4 million a year ago. Its net loss improved by 72% to $163.5 million.
Rather, the return of Roaring Kitty following a nearly three-year social media hiatus is the main cause behind AMC stock’s surge. Roaring Kitty was instrumental in the 2021 meme stock rally.
AMC was quick to take advantage of its higher stock price and announced on May 13 that it had completed its $250 million at-the-market (ATM) offering announced on March 28. The movie theater chain sold a total of 72.5 million shares at an average price of $3.45 per share.
The proceeds from the offering will go toward managing AMC’s debt load and for general corporate purposes. AMC added that the proceeds will also “enhance our liquidity” due to a weak first-quarter box office resulting from the lingering effects of the 2023 Writers Guild of America strike.
5 Investors Betting Big on AMC Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 211 13F filers disclosed a stake in AMC stock, a decline of 22 filers compared to the previous quarter. However, the total number of shares owned by these filers increased by 11.65% to 84.6 million.
Hedge funds, a subset of institutional investors, appeared bullish as well. While the total number of hedge funds with a stake in AMC declined by 13% to 47, the total number of shares owned by hedge funds increased by 15% to 28.16 million.
With that in mind, let’s take a look at AMC’s top five shareholders:
- Vanguard: 24.80 million shares. Vanguard acquired 4.61 million shares during Q1.
- BlackRock (NYSE:BLK): 9.56 million shares. BlackRock acquired 913,285 shares during Q1.
- Renaissance Technologies: 8.70 million shares. Renaissance acquired 3.81 million shares during Q1.
- D.E. Shaw & Company: 7.30 million shares. D.E. Shaw sold 2.05 million shares during Q1.
- Morgan Stanley (NYSE:MS): 5.34 million shares. Morgan Stanley acquired 2.06 million shares during Q1.
On the date of publication, Eddie Pan did not hold (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.
