- AMC insiders have cashed out on $US70 ($AU96) million worth of shares in the company this year, led by CEO Adam Aron.
- Aron sold $US25 ($AU34) million of AMC shares earlier this month in an effort to diversify his estate planning.
- AMC stock has risen nearly 2,000% this year thanks to bullish retail traders.
The sales, compiled and reported on by Bloomberg, have occurred amid AMC’s epic 2,000% rally so far this year, powered by the meme-stock craze and the company’s large base of retail investors.
Though many of the sales were pre-planned, previous years have seen just a fraction of the amount of insiders selling shares, Bloomberg reported. AMC did not immediately respond to Insider’s request for comment and declined to comment to Bloomberg.
Amid the meme-stock craze, Aron has become known as a leader of the retail traders, who call themselves apes and fondly named him “Silverback,” a top male gorilla.
Still, Aron sold $US25 ($AU34) million worth of shares earlier this month even while ensuring investors that he believed in the company. At the time, he told investors — most of whom are individuals — that he needed to diversify his assets for estate planning, considering 85% of his net worth was tied to AMC stock.
“I don’t want any of you ever to think that I have anything but full confidence in AMC’s future,” he said in defense of the sale.
Among the 14 other executives and board members who sold shares this year was Chief Financial Officer Sean Goodman. He dumped all of his shares, totaling $US8.5 ($AU12) million, Bloomberg wrote, noting he has the chance to be awarded more AMC stock in the future.
Other sellers include General Counsel Kevin Connor and Chief Marketing Officer Stephen Colanero, according to filings with the US Securities and Exchange Commission. Much of AMC’s insider sales have been concentrated in March, June, and November, the filings show.
AMC stock traded at $US41.50 ($AU57) at 1:45 p.m. in New York. The company, which has neared bankruptcy in the past, has sought to reach out to its retail traders this year by accepting cryptocurrencies like dogecoin and creating a rewards program that offers investors perks like free popcorn.