By Tomi Kilgore
Shares of AMC Entertainment Inc. dove Thursday to the lowest close in nearly eight months after Chief Executive Adam Aron disclosed the sale of more shares, but also tried to reassure investors by saying he was done selling.
According to a Form 4 filing with the Securities and Exchange Commission late Wednesday, Aron sold 312,500 shares in the open market on Jan. 11, as part of prearranged, Rule 10b5-1 trading plan. The shares were sold in multiple transactions ranging from $22.16 to $23.74, or at a weighted average price of $22.846, as Aron raised about $7.14 million.
The movie theater operator’s stock /zigman2/quotes/200235402/composite AMC -8.03% had traded in an intraday range that day of $22.09 to $23.75, before closing at $22.79.
He reminded investors that in August of last year, he said he would be selling some of his shares near the end of the year, but said those trading decisions were “out of my hands.”
“Those sales are now all finished,” Aron tweeted overnight.
Aron’s sold a total of 1.25 million shares at a weighted average price of $33.693 to raise $42.12 million over the past three months, including 312,500 shares sold at $30.867 on Dec. 7 and 625,000 shares sold at $40.529 on Nov. 9.
The stock tumbled 9.1% Thursday to $20.66, the lowest closing price since May 26. It has now plunged 54.2% since Nov. 8, the day before Aron started selling shares, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.01% has lost 0.9% over the same time.
Wednesday’s filing showed that Aron still owned 205,086 Class A shares, but that didn’t include 780,915 shares issuable based on continued service and 1,316,759 shares issuable upon attainment of performance goals, the total of which could be valued at roughly $47.6 million at current prices.
“I still own or plan to vest in 2,302,760 AMC shares,” Aron tweeted. “I am in!”
The stock has tumbled 48.4% over the past three months, but has still rocketed 847.7% over the past 12 months.