AMC’s stock declined Friday, closing almost 7%, after CEO Adam Aron sold more of his shares of the cinema chain. The stock had declined more than 10% during the session.
Aron unloaded another $9.65 million in shares of the company followed by retail traders.
The sale was telegraphed earlier this year and reiterated in the company’s last earnings call. Aron said selling would take place spread out across three different calendar months, citing prudent estate planning as the reason.
“Even after this brief wave of selling comes to an end, I, Adam Aron still will have well more than 2 million — 2 million fully owned or granted AMC shares in my name,” said Aron during the company’s earnings call in November.
“If you do the math, you will see that with this much current and future ownership of AMC, I have an enormous personal stake in the future of our company, of your company, of AMC Entertainment,” he added.
Regulatory filings show Aron sold 312,500 shares on Dec. 7 at $30.87. He also recently sold shares valued at more than $25 million.
The cinema chain was closed for much of 2020 during the pandemic, suffering staggering losses. The "meme" frenzy earlier this year drove AMC shares higher, allowing the company to raise cash by selling equity.
“Our quarter-ending liquidity as of September 30, 2021, of more than $1.8 billion, including cash and our undrawn revolving credit lines remains at near-record levels and also gives us comfort," Aron said in the company’s last earnings release.
AMC recently announced that domestic and international ticket sales in October were stronger than in any month since the start of the pandemic in 2020.
AMC shares, as well as other "meme" stocks have been under pressure over the last couple of weeks amid greater market volatility.