AMC stock surges on strong box office weekend, halted stock conversion
AMC stock soared 33% on Monday after a court ruling denied AMC’s move to convert AMC preferred equity shares into regular AMC shares and the theater chain saw its busiest day in four years over the weekend. $AMC Entertainment(AMC.US$
Opening weekend for "Barbie" and "Oppenheimer" brought more than 7.8 million moviegoers to AMC-operated theaters, according to the company. On Saturday, the theater chain posted the best single-day attendance since July 2019 while food and beverage revenue hit its second-highest daily total ever.
The stock had already been on the move after hours on Friday following a Delaware court ruling on AMC's share conversion. Shareholders initially approved the conversion of APE units into AMC common stock in March, pending the Delaware court ruling.
“Part of what swayed the judge was the nearly 3,000 individuals who sent in letters to sway the opinion, presumably out of concern for further share dilution,” Wedbush vice president of equity research Alicia Reese wrote in a note on Monday morning.
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