AMC shares rally after National CineMedia revealed it has large stake

After movie theater operator AMC Entertainment Holdings Inc. disclosed it had a large stake in the cinema advertising network, shares of National CineMedia Inc. rallied Wednesday.

AMC AMC, which has 5.95 million shares of the National CineMedia NCMI, is 6.8% of the outstanding shares, according to a 13 G filing with the Securities and Exchange Commission late Tuesday. AMC would be the third largest shareholder, according to the data provided by FactSet.

AMC doesn't intend to make changes at the company, because the 13 G filing implies a passive investment. National CineMedia's stock went up as much as 21.4% in the day, before paring gains went up 6.1% in morning trading. It has gained 8.5% in a three-day win streak, since it closed at a record low of $1.42 on Friday and Thursday. The shares AMC now owns would be valued at $9.2 million, based on current prices. AMC's meme stock climbed 7.5% in morning trading and has soared 33.8% since closing at a one-year low of $10.37 on May 11. Over the past 12 months, National CineMedia's stock has plunged 66.3%, while AMC shares have fallen 1.1% and the S&P 500 index SPX has declined 2.9%. AMC's investment in a cinema advertising company may not be a surprise for investors, especially when it comes to the disclosure of an investment in Hycroft Mining Holding Corp. two months ago. HYMC, a gold and silver miner. Days before the Hycroft investment was announced, the miner's stock had closed at a record low of 29 cents. It traded down 0.8% Wednesday morning at $1.33.