A sign hangs in front of the AMC Theater on January 27, 2021 in Chicago. Illinois, stock of AMC Entertainment. It more than quadrupled today as investors continue to buy stocks that are heavily shorted.
Scott Olson | Getty Images
Insider sales activities at AMC Entertainment It rose unprecedented during a rally raging by enthusiastic retail investors.
All seven insiders in the cinema chain sold a partnership since May 28, when the latest enforcement began. It sold in a wide price range of $27.42 to $62.67, according to an analysis of regulatory filings by InsiderScore. The share price has more than doubled since that day. It last traded at $57.70 each.
Six of them revealed their sales on Friday after the market close, and one revealed at the end of May, according to InsiderScore.
“Obviously, AMC insiders don̵7;t want to miss out on share-based compensation at a valuation few could have imagined a few months ago,” said Ben Silverman, director of research at InsiderScore.
A total of nine insiders sold in the quarter and three were paid in the first quarter, according to InsiderScore comparisons to no sellers in 2020, and only three from 2017 to 2019, InsiderScore said.
In particular, CEO Adam Aron, who joined the company in early 2016, has never sold his AMC stake.
AMC gained more than 120% in June just one month after a 160% increase in May. Pushing the 2021 rally to more than 2600%, the stock has surpassed its January highs amid the GameStop trading frenzy, which hit an intraday record of $72.62 last week.
Insiders must file a transaction in the Company’s ordinary shares, including derivatives, with the Securities and Exchange Commission within two business days after the transaction date.
Amid a massive rally last week, AMC was able to quickly sell 20 million shares in two separate deals. and generated approximately $800 million in cash.
“Between the two transactions We have raised over $800 million in cash, not to tie me or anyone who works at AMC, but to put that money into AMC’s treasury to strengthen AMC and allow AMC to do better. To grow the company,” Aaron said in a YouTube video last week.
Aron has signaled that he wants to sell up to 25 million additional shares as the company approaches the charter-issued share limit allowed. From January to May, AMC made about $1.6 billion from stock sales.
The company has approximately 501 million shares, with approximately 46,000 shares remaining for future issuance.
— Sarah Whitten of CNBC contributed to this story.
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