AMC Entertainment Holdings Inc. AMC CEO Adam Aron has sold shares worth $25 million in the movie theatre chain under a pre-arranged trading plan.
What Happened: Aron sold 625,000 AMC Entertainment shares on Tuesday at an average price of $40.53, according to a filing with the U.S. Securities and Exchange Commission.
A separate filing showed that Aron has received approval to sell 1.25 million AMC shares under the pre-arranged trading plan.
Aron took to Twitter to say that 62.5% of his annual pay is in AMC stock and not cash, and the sale was part of his estate planning. He added he will still own over two million shares in AMC following the stock sale.
62.5% of my annual pay is AMC stock, not cash. I hadn’t sold even 1 AMC share in 6 years. I publicly said months ago and again Monday, now at age 67, it’s prudent to diversify assets for estate planning. I STILL HAVE WELL OVER 2 MILLION OWNED/GRANTED AMC SHARES. I believe in AMC.
— Adam Aron (@CEOAdam) November 10, 2021
See Also: AMC Mulls Creating Its Own Cryptocurrency, Getting 'Hyperactive' In The Space
Why It Matters: AMC Entertainment is seeing a strong recovery from the impact of the pandemic, when lockdowns forced the movie theatre chain to close its theatres. The company reopened 98% of its locations in March.
AMC Entertainment on Monday reported a narrower-than-expected loss, while revenue beat estimates.
Heavily shorted stocks like AMC Entertainment and GameStop Corp. GME stole the limelight earlier this year after a flurry of buying by retail investors on Reddit pushed up the price of these stocks and caused huge losses among short-sellers.
The company’s stock continues to see high interest from retail investors and has skyrocketed an impressive 1805% since the year began.
Price Action: AMC Entertainment shares closed 4.1% lower in Wednesday’s regular trading session at $38.29 and further fell almost 2.5% in the after-hours session to $37.34.
Photo: Shutterstock
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