The management of AMC Entertainment Holdings, a large movie theater company that soared due to the “meme stock” craze in the U.S. stock market, sold more than $70 million worth of stocks this year.
Bloomberg reported on the 22nd (local time) based on AMC Entertainment’s disclosure that executives and executives who sold only a small amount of stocks over the past few years sold more than $70 million worth of stocks this year.
In particular, Chief Executive Officer Adam Aaron sold more than $25 million this month.
The meme stock craze was driven by the buying trend of individual investors, centered on the U.S. online community Reddit, and the prices of meme stocks such as AMC soared while those who sold the stocks suffered heavy losses.
AMC shares, which had been suffering from financial difficulties for years, soared only $2 early this year, but soared more than 100% in late May compared to the previous day’s closing price ($32.04), rising to $72.62 during the day on June 2.
Currently, AMC stock prices are lower than then, but they are still rising and falling around $40.
According to CNBC, CEO Aaron’s assets, which stood at $8 million at the beginning of June, rose more than $200 million in five months to $220 million as of early June when stock prices soared.
Bloomberg pointed out that corporate executives often sell their shares on the recent rise, but CEO Aaron openly favored ant investors and sold shares while promoting AMC’s future prospects.
About 10 AMC executives and executives disposed of their shares this year, with CEO Aaron as well as Chief Financial Officer Sean Goodman selling more than $8.5 million.
The stock sale was largely planned in advance, but AMC refused to request a comment, Bloomberg added.