AMC Entertainment Holdings Inc. reports third-quarter results on Tuesday, with the meme stock darling expected to provide an update on its APE equity units
The AMC Preferred Equity Units APE, +5.96%, or APEs, made their trading debut in August, sparking volatility and heralding the latest chapter in an eventful journey that took the cinema chain from a beleaguered pandemic victim to meme-stock phenomenon.
The APEs, which hit an intraday low of $1.41 on Monday, have fallen 74.8% since their debut. The dividend hit an intraday high of $10.50 on Aug. 22.
With its APE equity unit, AMC AMC, +5.44% created something like a 2-for-1 stock split, marking the company’s latest effort in a fight over stock issuances. AMC is also taking aim at its massive debt burden with the APE special dividend. The name is a nod to the investors who turned the company into a meme stock, who often refer to themselves as “apes” or “ape nation.” AMC issued an APE for each of its roughly 517 million shares outstanding.
AMC’s third-quarter results on deck:Will the meme-stock darling shake off concerns of a box-office slowdown?
The dividend gave AMC a great chance to get rid of its debt burden, according to Wedbush analyst Alicia Reese.
Image Credit: Market Watch AMC