AMC CEO Adam Aron gave an update on his stake in the cinema chain and its AMC Preferred Equity units.
“Multiple AMC shares and APE units were awarded yesterday, bringing my current ownership after income tax paid to 1,097,199 AMC shares and 1,348,138 APE units (excluding deductions). future transfers),” he tweeted late Thursday. “I am AMC’s largest retail shareholder.”
“I’m not going to sell any of these anytime soon. I ride with you! he added, repeated comment he did earlier this week.
AMC CEO Adam Aron won’t sell more shares ‘anytime soon,’ he tells investors: ‘I’m with you’
“About 2/3 of my total pay is in stock not cash,” he tweeted on Monday. “Going public first, I only sold shares once in those 7 years, a period of 65 days, from November 21 to January 22. My stock sale ended a year ago. I will NOT sell any more anytime. I ride with you.
Aron sold more than $40 million stake in AMC Entertainment Holdings Inc.
AMC,
warehouse from November 2021 to January 2022.
Last month shares of AMC plunge towards a 22-month low after the company announced a plan to raise $110 million in equity and said it was looking to split its common stock in a 1:10 ratio. Shares of the meme stock darling are down 75.6% in 2022, outpacing the 19.4% drop in the S&P 500 Index. The stock hit a 52-week low of $3.81 on the 28th. December 2022.
Shares of the company were down 1.8% before the market opened on Friday.
Last week Aron speak he asked the company’s board to “circle red and freeze” his cash and target stock to pay for 2023. Aron, who has led AMC since 2016, described the move. his stance in a series of tweets as AMC stock headed for its third consecutive drop after Aron Announcement of share sale and reverse stock split plan.
The wage freeze is a move to appease cinema chain investors, according to Wedbush Vice President of Equity Research, Alicia Reese.
See: What can we expect from AMC, GameStop, and Bed Bath & Beyond meme stocks in 2023?
AMC, like fellow meme stock GameStop Corp.
GME,
was a big beneficiary of the frenzy of trading in January 2021, which sent shares of struggling companies soaring to dizzying heights.
AMC Preferred Equity Units
ape,
or APE, launched trading in Augustheralds the latest chapter in its journey to take the cinema chain from a besieged pandemic poster kid to a meme-stock phenomenon.
APEs have dropped 77.5% since launch. The name is a nod to the investors who have turned the company into a stock meme, who often refer to themselves as “monkeys” or “ape nation.”
See: Is the golden age of meme stocks over?
Before the market opened on Friday, APE was down 2.2%.
Last week, Aron explained that he’s also asked AMC’s 15 to 20 top executives to waive their cash raises in 2023, and they agreed.
Despite the top-level salary freeze, the CEO insists AMC employees will get a raise. “Yes, absolutely,” he tweeted in response to a question posed on Twitter. “We only ask those at the top to make financial sacrifices.”
In November AMC report 12 of itorder consecutive quarterly losses, sending the company’s stock plunging. AMC, which describes itself as the largest movie theater chain in the world, ended the third quarter with liquidity of just under $895.8 million. “We will use it to continue to grow but also to continue to reduce leverage,” Aron said on a conference call to discuss the results.
In a note released Tuesday, B. Riley Securities lower Its AMC stock price target is $4.50 from $7.50. It also lowered its box office estimates for 2023 and 2024 from $9.5 billion and $10.7 billion to $8.9 billion and $10.1 billion respectively. B. Riley Securities analyst Eric Wold writes: “While studios increasingly embrace theatrical length, post-production backlogs are delaying the release.
