AMC Entertainment Holdings, Inc. (NYSE:AMC) shares are moving lower Tuesday. The stock appears to be moving on continued downward momentum. Here's a look at what's going on.
What To Know:
AMC shares are falling ahead of a 10-to-1 reverse stock split scheduled to take effect Thursday. AMC Preferred Equity Units (NYSE:APE) will be converted to AMC common stock the following day. The number of AMC shares will increase from approximately 542.2 million to 550 million shares following the reverse split and stock conversion.
AMC Entertainment CEO, Adam Aron said, "We can use this access to equity capital to shore up our cash reserves, pay down debt, invest in growth initiatives to strengthen our operating profitability and pursue transformative merger and acquisition opportunities."
Last Friday, Citigroup analyst Jason Bazinet maintained AMC Entertainment Holdings with a Sell rating and lowered the price target from $1.65 to $1.55.
AMC shares have been halted to the downside multiple times and are moving lower on extremely heavy trading volume. According to Benzinga Pro, more than 42 million shares have already been traded in the session, compared to the stock's 100-day average of 30.94 million shares.
APE units are also dropping on heavy volume and are down 9% for the session.
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AMC Price Action: According to Benzinga Pro, AMC shares are down 18% at $2.55, and APE units are down 9% at $1.93 at the time of publication.
Image: Alexas_Fotos from Pixabay