Movie theatre chain AMC Entertainment Holdings Inc. AMC 0.16%is seeing heightened insider selling activity since last week amid the retail-investor-driven rally, CNBCreportedMonday, citing an analysis of regulatory filings by InsiderScore.
What Happened: Data by InsiderScore showed that seven insiders at AMC Entertainment have sold a portion of their holdings since May 28 in a wide range of $27.42 to $62.67 per share. AMC’s stock price has more than doubled since May 28.
A total of nine insiders sold AMC stock during the second quarter, compared to three insiders in the first quarter. Insiders did not sell any AMC stock during the entire 2020, while just three insiders sold AMC shares from 2017 to 2019, according to the Insider Score data.
The nine insiders - including AMC Chief Financial Officer Sean Goodman and Chief Marketing Officer Stephen Colanero — sold a total of 285,100 shares in the second quarter. However, AMC CEO Adam Aron has not sold any of his shares.
Why It Matters: Shares of stonks, or stocks favored by retail investors, have surged in recent days as these investors pile into the stocks and attempt a new short squeeze.
It was reported on Sunday that BlackBerry Limited BB 0.29%and AMC Entertainment were themost-mentioned stockson the Reddit investor forum r/WallStreetBets, or WSB, over a seven-day period.
AMC Entertainment has skyrocketed a whopping 2,494.3% since the year began and itsvaluationshot past fellow stonkGameStop CorporationGME 0.03%last week amid increasing interest.
AMC too has capitalized on its stock’s massive surge and sold 20 million shares in two separate deals recently to raise over$800 millionin cash.
Price Action: AMC Entertainment shares closed 14.8% higher in Monday’s regular trading session at $55.00 and further rose almost 2.2% in the after-hours session to $56.20.