Executives at AMC (NYSE: AMC) have been taking advantage of the boost its shares received from Reddit users and have been selling millions worth of stock.
Four executives of the world’s largest movie chain sold nearly $3 million in shares, Barron’s reported today, citing regulatory filings. Executives started selling off shares after President Joe Biden signed a $1.9 trillion stimulus package into law and Americans started receiving money in their bank accounts
Since the middle of the month, AMC shares have been extremely volatile, trading anywhere between $8.93 and $14.54 each. Even though AMC has been reopening more of its locations, the stock hasn’t been gaining much on fundamentals. Instead, a Reddit mob that includes retail investors has been driving up the price of the stock to torment hedge funds.
The biggest chunk of AMC’s stock was sold off by the chief marketing officer and executive vice president Stephen Colanero, who got rid of 100,000 shares for $1.1 million on Mar. 23. He now holds 108,879 shares of AMC.
Between Mar. 16 and Mar. 17, Kevin Connor, the senior VP, general counsel, and secretary, sold more than 72,000 shares for $982,600. Elizabeth Frank, the executive VP, global programmer, and chief content officer, sold 40,000 AMC shares for $542,400. Chief accounting officer and senior VP Chris Cox sold more than 29,000 shares for $373,800. Connor, Frank, and Cox now own 65,884, 173,780, and 42,000 shares of AMC, respectively.
The news follows Chinese conglomerate Dalian Wanda Group Co. trimming its stake in AMC to 9.8% earlier this month. While Wanda will no longer have majority control over AMC, it will keep two board seats.
Also, private equity firm Silver Lake sold its entire holdings in AMC for $713 million in late January.
Last week, I recommended buying another short squeeze target GameStop (NYSE: GME) if its stock falls by around the summer. I recommend doing the same with other popular short squeeze stocks including AMC ahead of the next possible round of economic stimulus.
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