The Stock of AMC Extends Its Losing Streak to Five Days, Closing at Another Record Low

AMC Entertainment Holdings Inc. saw its losing streak extend to five consecutive days on Friday, as the stock concluded the session with a 2.5% decline, closing at $5.15.

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This marks AMC's lengthiest losing streak since the seven-day slide that concluded on August 29, 2023. The movie-theater chain, once a darling among meme stocks, had set a then-record low close of $5.30 in the preceding session, sparking attention on Stocktwits, a social platform for investors and traders, where AMC was trending at the opening of Friday's session.

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Notably, the previous record closing low for AMC stood at $6.07, established on December 21, 2023, according to Dow Jones Market Data, referencing available information dating back to December 18, 2013.

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This decline in AMC's share price stands in stark contrast to its meme-stock zenith when it achieved an all-time closing high of $339.05 on June 2, 2021.

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In a regulatory filing made on Tuesday, AMC disclosed that between December 28 and December 29, 2023, the company engaged in a series of privately negotiated exchange agreements, issuing approximately 3.26 million shares of Class A common stock in exchange for $22.5 million of its notes due in 2026. The common stock issued implied a value of $6.94 per share, as per AMC's statement. The filing further clarified that while the company might undertake similar transactions in the future, it is not obligated to do so.

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This strategic move by AMC reflects its ongoing efforts to address its substantial debt burden, which exceeded $5 billion in 2022. In that year, AMC initiated its APE special dividend, and in 2023, it completed the conversion of the APEs into AMC common stock along with a reverse 1-for-10 split of common stock.

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In December, AMC concluded its latest at-the-market equity offering, securing approximately $350 million. AMC's CEO, Adam Aron, has consistently cautioned about the company's liquidity challenges.

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Over the past 12 months, AMC shares have experienced a substantial decline of 84.8%, a sharp contrast to the S&P 500 index's gain of 20.6%. This divergence underscores the challenges and headwinds faced by AMC in the current market environment.