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AMC Entertainment CEO Adam Aron Sells $25M In Stock As Part Of 'Estate Planning'

AMC Entertainment Holdings Inc. (NYSE: AMC) CEO Adam Aron has sold shares worth $25 million in the movie theatre chain under a pre-arranged trading plan.

Benzinga · 11/11/2021 04:51

AMC Entertainment Holdings Inc. (NYSE:AMC) CEO Adam Aron has sold shares worth $25 million in the movie theatre chain under a pre-arranged trading plan.

What Happened: Aron sold 625,000 AMC Entertainment shares on Tuesday at an average price of $40.53, according to a filing with the U.S. Securities and Exchange Commission.

A separate filing showed that Aron has received approval to sell 1.25 million AMC shares under the pre-arranged trading plan.

Aron took to Twitter to say that 62.5% of his annual pay is in AMC stock and not cash, and the sale was part of his estate planning. He added he will still own over two million shares in AMC following the stock sale.

See Also: AMC Mulls Creating Its Own Cryptocurrency, Getting 'Hyperactive' In The Space

Why It Matters: AMC Entertainment is seeing a strong recovery from the impact of the pandemic, when lockdowns forced the movie theatre chain to close its theatres. The company reopened 98% of its locations in March.

AMC Entertainment on Monday reported a narrower-than-expected loss, while revenue beat estimates.

Heavily shorted stocks like AMC Entertainment and GameStop Corp. (NYSE:GME) stole the limelight earlier this year after a flurry of buying by retail investors on Reddit pushed up the price of these stocks and caused huge losses among short-sellers.

The company’s stock continues to see high interest from retail investors and has skyrocketed an impressive 1805% since the year began.

Price Action: AMC Entertainment shares closed 4.1% lower in Wednesday’s regular trading session at $38.29 and further fell almost 2.5% in the after-hours session to $37.34.

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Photo: Courtesy of Ajay Suresh via Wikimedia