AMC Entertainment Holdings Inc. (NYSE: AMC) hit a new all-time high of USD 72.62. The previous close the day before was USD 32.04. The seemingly unreal trading of AMC prompted several trading halts as more than 400 million shares exchanged hands this Wednesday. For reference, the 30-day average trading volume is 143 million shares. This wild volatility came after the news of Mudrick Capital Management dumping its entire AMC stake for a profit.
In a recent stock sale with Mudrick Capital Management, AMC was able to raise USD 230.5 Million. The agreed deal sees Mudrick Capital acquire 8.5 million shares of common stock at USD 27.12 a share, which is remarkable considering the fact that stock price had dropped to USD 2 at the start of 2021 and was on the verge of bankruptcy amidst the pandemic. The hedge fund sold its entire stake in AMC for a profit when the hedge fund deemed the shares as overvalued.
AMC’s stock price is up more than 2800% year-to-date and has a market cap of USD 28 Billion. The extreme price fluctuations were fueled largely by a frenzy of retail investors pumping up the stock price under the subreddit WallStreetBets throughout the past year, alongside other meme stocks like GME and BB. Blackberry Ltd (NYSE: BB) and Gamestop (NYSE: GME) both showed monster double-digit percentage gains intraday.