Why AMC Entertainment Stock Was Down 12% Today

The stock of AMC Entertainment Holdings (NYSE: AMC) continued the wild ride Monday that started with Reddit's WallStreetBets investors last month. Shares of AMC dropped after a major shareholder converted share classes allowing it to cash out. Shares were down 12% as of 11:55 a.m. EST.

AMC revealed in a U.S. Securities and Exchange Commission (SEC) filing that on Feb. 1, Wanda America Entertainment, a unit of China's Wanda Group, converted its AMC Class B shares into Class A shares, "in order to permit sales of its common stock."

The Feb. 5 filing did not reveal the number of shares that were converted. Wanda Group is a parent organization of AMC Theatres and shareholder of AMC Entertainment. It also did not report that the organization had sold any shares.

Source Fool.com