The stock of movie theatre operator AMC Entertainment Holdings Inc (NYSE: AMC) has been quite volatile so far this year and that was apparent last Friday as well. After having jumped by as high as 15% at the beginning of the trading session, the stock ended the day 4% in the red.
That being said, the stock is still up by as high as 235% so far in 2021. In this regard, it needs to be pointed out that the company’s finances are stretched and in order to cash in on the rally, AMC had also issued more stock.
Recently, the company raised $305 million through a share offering to take the total capital raised to $917 million since December 2020. More importantly, the Chief Executive Officer of the company Adam Aron stated that after having got a cash injection of $1 billion, there is no threat to bankruptcy for AMC. However, the issuance of more stock is something that investors must be wary of.