AMC stock rises after credit score upgrade

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AMC stocks have been a battleground between short sellers and people who bought in the hope of making a profit by forcing them to close their bets,

Angela Weiss / AFP / Getty Images

AMC Entertainment

the stocks suddenly erupted on what was otherwise a generally quiet Friday for the stocks even.

After trading around $ 44.12 shortly after noon, AMC stock (ticker: AMC) suddenly surged. Shares rose 12% to $ 48.01 shortly after 2pm. S&P Global Ratings analysts gave Thursday

AMC Entertainment

a revaluation of its rating following its fundraising efforts.

GameStop,

the original extremely volatile memes (GME) stock rose 1.4% to $ 223.55. Actions of

Nokia

(NOK) fell 0.6% to $ 5.42, while

Blackberry

the stock (BB) rose 1.4% to $ 14.09.

The sudden breakout of AMC runs counter to a recent trend. Since April 30, but before the last leap, AMC stock had on average an absolute, two-way move of 3.5% on Friday, compared to 14.1% on other days of the week during that time. period. GameStop stock had seen similar trends, with an average absolute move of 3.81% on Friday, compared to a daily average absolute move of 7.8% on other days of the week, according to Dow Jones Market Data.

News on GameStop dominated the stock trading even this week. The video game retailer has given investors a ton to digest, including two major executive hires, earnings results and plans to sell shares at market prices.

AMC and GameStop both skyrocketed last month as their price gains forced traders who had bet stocks would fall to cover or close their positions. Their purchase pushed stocks up again in a so-called short squeeze, but GameStop stock fell about 27% on Thursday. Friday’s decision was a modest reprieve for those who held the shares hoping for further gains.

Ihor Dusaniwsky, managing director of short sell analytics firm S3 Partners, noted that AMC and GameStop still have enough short sellers to trigger further 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 overdraft interest at 69.85 million shares, or 14% of the free float.

He says short sellers have hedged 685,000 GameStop stocks worth $ 207 million in the past 30 days, most of them in the past week. For AMC, the short sellers repurchased 20.6 million shares, worth $ 1.02 billion, in the past 30 days.

“AMC’s stock price continues to be volatile with short sellers earning or losing hundreds of millions of dollars a day,” he said.

Those who expect meme stocks to calm down next week should keep in mind that the busiest days for GameStop action since April 30 have been Mondays, with an average movement of 9% and Thursdays, 9.3%. For AMC, Wednesday and Thursday are the busiest days, averaging 23% and 15% movement back and forth on the respective days.


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