What happened
Theater operator AMC Entertainment (AMC -15.33%) has had a volatile couple of months. The business itself has been raising money to weather what the company hopes is the last leg toward returning theaters to normal operations. The stock has also fluctuated wildly as a favorite among Reddit WallStreetBets users.
Today, shares are up 9.7% as of 11:15 a.m. EST.
So what
Trading volatility has shown up in the stock's 30-day average daily trading volume, which has soared more than 600% since the start of 2021. And the buyers have been moving the share price higher recently -- up 40% in just the past five trading days. That period included the company's fourth-quarter and full-year 2020 earnings report and business update.
Image source: Getty Images.
Now what
Perhaps most importantly, the company said that as of March 5, 2021, 89.5% of its domestic theaters were open, along with 22% of its international locations. Theaters in important markets like New York City and San Francisco have reopened with limited seating capacities.
The company has had to raise additional capital to weather the extended pandemic-related theater closures. AMC has raised about $870 million selling additional equity since the start of 2020, and a total of $2.2 billion between debt and equity since March 2020. AMC President and CEO Adam Aron said in a statement, "I am confident that the actions that we have taken have positioned us well to capitalize on pent-up demand for movie going as the rollout of vaccines accelerates."
Investors seem to be in agreement, hoping the business can prosper in the not-too-distant future.
