AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Thursday after the company announced an at-the-market offering program.

What Happened: In a new regulatory filing, AMC said it entered into an equity distribution agreement to sell up to $250 million of its common stock from time to time in an at-the-market offering.

AMC intends to use the net proceeds to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness and for general corporate purposes.

"Among other reasons, the offering is being conducted to enhance the Company's liquidity in light of the low first quarter box office, resulting in part as previously disclosed from the Writers Guild of America strike and the Screen Actors Guild-American Federation of Television and Radio Artists strike that occurred during 2023, increased seasonal working capital requirements, and the resulting cash burn the Company has experienced," the company said in the filing.

AMC is not obligated to sell any stock under the equity distribution agreement and may at any time suspend offers under the agreement.

AMC Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at AMC, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For AMC, the 200-day moving average sits at $16.16, according to Benzinga Pro, which is above the current price of $3.85. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

AMC Price Action: AMC shares were down 11.5% at the time of publication, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.