An AMC theater is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan neighborhood of New York City, New York, USA, 27 January 2021.
Carlo Allegri | Reuters
AMC announced in a security filing Tuesday that Mudrick purchased 8.5 million shares at about $ 27.12 per share, valued at about $ 230.5 million. Bloomberg News reported later that day that the investment firm then sold all of its shares for a profit, benefiting from the pop in the stock, partly due to the capital raised by Mudrick.
While the exact price at which Mudrick sold its AMC stock is unclear, box office stock closed Tuesday at $ 32.04, bringing Mudrick’s stake to $ 272.34 million. That means Mudrick made an estimated profit of more than $ 41 million on his sale.
At the high of $ 72.62 on Wednesday, the 8.5 million AMC shares Mudrick owned would have been worth $ 617.27 million.
As such, the company may miss another $ 344 million in profit on Wednesday on top of the estimated $ 41 million it earned on Tuesday.
But if fundamental analysts are right, and AMC stock will eventually fall 90%, Mudrick payday will still be a big one, even if it missed the height of the hype. Most Wall Street analysts believe AMC stock will fall significantly lower. Analysts’ average 12-month target price is $ 5.11, according to FactSet.
Mudrick officials did not immediately respond to CNBC’s request for comment.
– With coverage by Sarah Whitten of CNBC.
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