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May 18, 2022, 1:09 p.m. EDT

AMC discloses large passive investment in National CineMedia

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By Tomi Kilgore

Shares of National CineMedia Inc. rallied Wednesday, after movie theater operator AMC Entertainment Holdings Inc. disclosed that it acquired a large stake in the cinema advertising network operator.

In a 13G filing with the Securities and Exchange Commission late Tuesday, AMC /zigman2/quotes/200235402/composite AMC -5.54% said it owned 5.95 million shares of National CineMedia /zigman2/quotes/210013369/composite NCMI +3.40% , or 6.8% of the shares outstanding. That would make AMC the third largest shareholder, according to data provided by FactSet.

The 13G filing implies a passive investment , which suggests AMC doesn’t intend to make changes at the company.

National CineMedia’s stock shot up as much as 21.4% intraday, before paring gains to be up 6.1% in morning trading. It has now gained 8.5% amid a three-day win streak, since it closed at a record low of $1.42 on Friday and Thursday.

Based on current prices, the shares AMC now owns would be valued at about $9.2 million.

Meanwhile, AMC’s “meme” stock climbed 7.5% in morning trading, and has soared 33.8% since closing at a one-year low of $10.37 on May 11.

Over the past 12 months, National CineMedia’s stock has plunged 66.3%, while AMC shares have slipped 1.1% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.16% has declined 2.9%.

The disclosure of AMC’s investment in a cinema advertising company may not be such a surprise for investors, especially when compared with the disclosure two months ago of an investment in Hycroft Mining Holding Corp . /zigman2/quotes/202142052/composite HYMC -7.34% , which is a gold and silver miner.

Days before the Hycroft investment was announced, the miner’s stock had closed at a record low of 29 cents. It traded down 0.8% Wednesday morning at $1.33.

/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 12.78
-0.75 -5.54%
Volume: 30.28M
July 5, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$6.99 billion
Rev. per Employee
$101,458
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/zigman2/quotes/210013369/composite
US : U.S.: Nasdaq
$ 0.97
+0.03 +3.40%
Volume: 795,257
July 5, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
12.37%
Market Cap
$76.72 million
Rev. per Employee
$419,364
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,831.39
+6.06 +0.16%
Volume: 2.51B
July 5, 2022 5:04p
loading...
/zigman2/quotes/202142052/composite
US : U.S.: Nasdaq
$ 1.01
-0.08 -7.34%
Volume: 6.04M
July 5, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$214.82 million
Rev. per Employee
$988,863
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