AMC Stock – AMC Stock Is Rising After Credit-Rating Upgrade
shares popped suddenly on what was otherwise a typically quiet Friday for meme stocks.
After trading around $44.12 shortly after noon, AMC stock (ticker: AMC) jumped suddenly. Shares were up 12% to $48.01 shortly after 2 p.m. Analysts at S&P Global Ratings Thursday gave
a credit-rating upgrade following its efforts raising cash.
the original wildly volatile meme stock (GME), was up 1.4% to $223.55. Shares of
(NOK) were down 0.6% to $5.42, while
stock (BB) was up 1.4% to $14.09.
AMC’s sudden breakout bucks a recent trend. Since April 30, but before the latest jump, AMC stock had averaged an absolute move—meaning in either direction—of 3.5% on Fridays, compared with 14.1% on the other weekdays during that period. GameStop stock had seen similar trends, averaging an absolute move of 3.81% on Fridays, compared with a daily average absolute move of 7.8% on the remaining weekdays, according to Dow Jones Market Data.
News about GameStop dominated meme-stock trading this week. The videogame retailer gave investors a ton to digest, including two major executive hires, earnings results, and plans for a stock sale at market prices.
Both AMC and GameStop soared last month as gains in their price forced traders who had bet the stocks would fall to cover, or close out their positions. Their buying sent the stocks higher still in a so-called short squeeze, but GameStop stock dropped about 27% on Thursday. Friday’s move was a modest reprieve for those holding the shares in hopes of further gains.
managing director at short selling analytics firm S3 Partners, noted that both AMC and GameStop still have enough short sellers to spark a larger squeeze. After the close on Thursday, he estimated GameStop’s short interest at 11.23 million shares, or 19.4% of the total available for trading. For AMC, he estimated short interest at 69.85 million shares, or 14% of the float.
He says that short sellers have covered 685,000 GameStop shares worth $207 million over the past 30 days—most of which came over the past week. For AMC, short sellers have bought back 20.6 million shares, worth $1.02 billion, over the past 30 days.
“AMC’s stock price continues to be volatile with short sellers making or losing hundreds of millions of dollars daily,” he said.
Those expecting meme stocks to calm down next week should keep in mind that GameStop stock’s busiest days since April 30 have been Mondays, with an average move of 9% move, and Thursdays, at 9.3%. For AMC, Wednesday and Thursday are the busiest days, averaging a 23% and 15% move in either direction on the respective days.