5 Meme Stocks Redditors are Buying in April

2. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 17

AMC Entertainment Holdings, Inc. (NYSE:AMC) owns and runs theaters in the US and Europe. In early April, Fox Business reported that the company was seeking to transition to distressed investing as it sought to branch out of the movie business. According to the report, Adam Aron, the CEO of the firm, was reportedly seeking $500 million for the purpose. The stock is one of the most popular “meme” stocks on Reddit and has been one of the top mentioned on the platform since January 2021. 

On February 1, Benchmark analyst Mike Hickey maintained a Hold rating on AMC Entertainment Holdings, Inc. (NYSE:AMC) stock without a price target. 

At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $328 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), the same as in the preceding quarter worth $252 million. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in AMC Entertainment Holdings, Inc. (NYSE:AMC)  with 4.9 million shares worth more than $135 million. 

In its Q3 2021 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:

“AMC Entertainment Holdings, Inc. (NYSE:AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC Entertainment Holdings, Inc. (NYSE:AMC) in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”