Mudrick Capital has sold its entire holdings in AMC Entertainment, calling the meme stock overvalued, according to Markets Insider. The sale happened the same day Mudrick had purchased $230.5 million worth of AMC shares.
Mudrick concluded that AMC was overvalued, driven by retail frenzy by retail traders.
Mudrick had purchased 8.5 million shares in AMC at $27.15 a piece, a premium price to the Friday’s closing of $26.12.
AMC jumped by 116% last week as retail traders on Twitter and Reddit raided the stock, squeezing short sellers.
AMC has been hitting higher levels after shaking off pandemic woes and expected to use the funds raised from stock sale to finance acquisitions and improve its theatres.
The movie theatre company projected recovery following growing vaccinations, release of blockbuster movies, and increased liquidity.AMC is currently gaining.
AMC: NYSE is up 17.60% on premarket.
