Shares of AMC Entertainment Holdings Inc (NYSE:AMC) climbed higher on Thursday afternoon, sparked by a resurgence in retail investor enthusiasm largely attributed to notable insider buying activity at GameStop Corp (NYSE:GME). Over the course of two consecutive days, GameStop CEO Ryan Cohen purchased a combined total of one million shares, acquiring 500,000 shares late Tuesday and an additional 500,000 shares on Wednesday. These purchases, executed at an average price near $21 per share, increased Cohen's ownership stake in GameStop to above 9%, signaling robust confidence in the company's longer-term prospects.
The ripple effect of Cohen’s substantial insider accumulation has transcended GameStop itself, influencing sentiment towards AMC Entertainment. AMC, a prominent movie theater chain operating thousands of screens globally, has been navigating challenges posed by post-pandemic debt while seeking to leverage the gradual recovery of box office attendance. To enhance revenue, AMC has been focusing on premium viewing formats, concert films, and curated special events aimed at increasing per-customer spending.
Historically, AMC and GameStop have exhibited a correlated trading pattern, emerging together as focal points of the 2021 retail trading surge where online communities targeted stocks with heavy short interest. This shared profile as meme stocks has established them as proxies for retail-driven trading momentum and the potential for short squeeze dynamics.
Cementing this narrative, AMC currently exhibits substantial short interest. Data from Benzinga Pro indicates that 18.19% of the company's float remains sold short, underscoring its vulnerability to short-covering rallies which could contribute to amplified price movements.
Adding to the day's momentum, Thursday marks the one-year anniversary since Keith Gill, popularly known as "Roaring Kitty," last posted on social media. As the figurehead of the 2021 meme-stock movement, this anniversary has stirred nostalgic commentary within online forums and social media platforms, potentially invigorating renewed retail investor fervor around these equities.
From a technical analysis perspective, AMC's shares are currently trading approximately 5.3% above their 20-day simple moving average (SMA), suggesting some short-term upward momentum. However, the stock remains 14% below its 50-day SMA and 29.2% beneath its 100-day SMA, reflecting persistent longer-term weakness. Over the past 12 months, AMC’s stock has declined by 50.15%, positioning it nearer to its 52-week lows than its highs.
Additional technical indicators present a mixed picture. The Relative Strength Index (RSI), a momentum oscillator, stands at 41.74, placing it within neutral territory without clear directional bias. Conversely, the Moving Average Convergence Divergence (MACD) indicator is above its signal line, denoting a degree of bullish momentum that could support short-term gains, though this is tempered by the neutral RSI reading.
Key technical price levels to watch include resistance at approximately $2.00 per share and support near $1.50 per share, points which may influence trading behavior and investor decision making in the near term.
As of Thursday afternoon trading, AMC shares were up 4.97%, reaching $1.69 according to Benzinga Pro data. Accompanying this, GameStop shares also showed gains, trading up 6.06% at $23.00, underscoring the intertwined trading dynamics between these two entities favored by retail investors.