AMC Stock Price Increased 14.91%: Why It Happened

By Amit Chowdhry ● Feb 23, 2021
  • The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) increased by 14.91%. This is why it happened.

The stock price of AMC Entertainment Holdings Inc (NYSE: AMC) increased by 14.91% as it went from a previous close of $5.70 to $6.55 on Monday February 22. Investors are responding to Governor Andrew Cuomo announcing that movie theaters can be reopened on March 5 in New York City. The theaters have to be at 25% capacity and guests will be limited to a maximum of 50 people per screen.

“Governor Cuomo’s announcement that movie theatres can reopen in New York City in the first week of March is another important step towards restoring the health of the movie theatre industry and of our Company. We are excited to announce that AMC, the largest movie theatre exhibitor in New York City, will reopen all 13 of our theatres in New York City beginning March 5. We will do so with the highest devotion to the health and safety of our guests and associates through our AMC Safe & Clean policies and protocols, which were developed in consultation with Clorox and with current and former faculty at the prestigious Harvard University School of Public Health. AMC Safe & Clean includes social distancing & automatic seat blocking in each auditorium, mandatory mask wearing, and upgraded air filtration with MERV-13 air filters, as well as many other important health, sanitization and cleanliness efforts,” said Adam Aron, CEO and President of AMC Entertainment. “Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”

AMC said that guests can expect to experience AMC’s comprehensive health and sanitation program: AMC Safe & Clean — which was developed under advisement of current and former faculty of Harvard University’s prestigious School of Public Health as well as cleaning brand The Clorox Company.

And AMC Safe & Clean components include significant reductions in the maximum tickets available for each showtime and seat blocking in reserved seating auditoriums to allow for appropriate social distancing between parties, enhanced cleaning procedures that include extra time between showtimes to allow for a thorough cleaning and nightly disinfecting utilizing high tech HEPA vacuums and upgraded air filtration efforts, including the use of MERV 13 filters, new guest, and associate safety protocols that include mandatory mask wearing by all guests and associates, hand sanitizing stations throughout the theatre, and the availability to guests of disinfectant wipes. 

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.