STT - The 5 Biggest Buyers of AMC Entertainment (AMC) Stock in Q1

2024-06-03 12:38:34 ET

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Shares of AMC Entertainment (NYSE: AMC ) are up more than 10% today, although the rise isn’t attributed to any company-specific news. Rather, AMC stock is trading higher in sympathy with GameStop (NYSE: GME ).

Over the weekend, Roaring Kitty — whose real name is Keith Gill — revealed a $181.40 million stake in GME stock through a combination of shares and $20 call options expiring on June 21.

Meanwhile, AMC’s short interest has the potential to drive a short squeeze. As of May 15, there were 56.73 million shares sold short, equivalent to a short interest as a percentage of float of 19.3%. A short interest above 10% is considered high, while a short interest above 20% is considered very high.

At the same time, AMC has previously taken advantage of spikes in its stock price by raising equity, which dilutes shareholders and reduces the effect of any momentum.

On May 13, the company completed a $250 million at-the-market (ATM) offering , which was announced on March 28. The $250 million was raised through the sale of 72.5 million shares at an average price of $3.45. The offering proceeds will be used to service its debt and for general corporate expenses.

The 5 Biggest Buyers of AMC Stock in Q1

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, AMC doesn’t have the strongest institutional ownership, likely due to the company’s lack of profitability, large debt pile and falling sales growth . Analysts expect AMC to generate $4.60 billion of sales in cyclical year 2024, marking a year-over-year (YOY) decline of 4.31%.

As of Q1, a total of 211 13F filers reported a stake in AMC, down by 22 filers compared to Q4. These filers own 84.6 million shares, which actually increased by 11.65%.

With that in mind, let’s take a look at AMC’s top buyers during Q1:

1. Vanguard added 4.61 million shares, bringing its stake to 24.80 million shares.
2. Renaissance Technologies added 3.81 million shares, bringing its stake to 8.70 million shares.
3. Morgan Stanley (NYSE: MS ) added 2.06 million shares, bringing its stake to 5.34 million shares.
4. State Street (NYSE: STT ) acquired 1.69 million shares, bringing its stake to 3.82 million shares.
5. Balyasny Asset Management added 1.48 million shares after previously owning zero shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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