What's Going On With AMC Entertainment Stock?

AMC Entertainment Holdings Inc AMC shares are trading lower Wednesday. The company announced it entered into a series of privately negotiated exchange agreements.

What To Know: In a new regulatory filing, AMC disclosed that it entered into multiple exchange agreements between Dec. 28 and Dec. 29, under which it issued or will issue 3,258,657 shares of its common stock in exchange for $22.5 million of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026.

Based on the aggregate principal amount exchanged plus accrued interest, AMC said the stock issued had an implied value of $6.94 per share.

The news comes after AMC entered into several other exchange agreements in December and completed a $350 million at-the-market equity offering in an effort to strengthen its balance sheet. As of Sept. 30, AMC had $729.7 million in cash and cash equivalents. 

On Tuesday, B. Riley Securities analyst Eric Wold maintained AMC with a Neutral rating and lowered the price target from $15 to $12. The current consensus price target on AMC stock is $7.25, according to Benzinga's analyst data.

Check This Out: Bonds Behaving 'Almost Like A Meme Stock,' Says Equity Strategist: 'The Bond Market Is In Charge'

AMC Price Action: AMC shares are down approximately 31% over the last three months. The stock was down 6.54% at $5.71 at the time of publication, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.