AMC Entertainment (NYSE:AMC) shares are up nearly 5% in the pre-market session today after the movie exhibitor completed an at-the-market (ATM) equity offering of 40 million shares. The move helped the company raise $325.5 million in new equity capital at an average price of $8.14 per share.
This transaction substantially boosts AMC’s cash position and shores up its balance sheet. The company noted that the industry box office has fared 39% better year-to-date, and the success of the TAYLOR SWIFT THE ERAS TOUR film further puts AMC on a robust path to recovery.
Adam Aron, the President and CEO of AMC, commented, “The successful completion of this equity offering marks another significant milestone for AMC. Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive.”
Overall, the Street has a consensus price target of $18.50 on AMC, alongside a Moderate Sell consensus rating. After a mega 90.4% drop in its share price over the past year, this consensus price target implies a massive 124.5% potential upside in the stock.
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