AMC Stock is set to join the Russell 1000 on June 24th. This is a huge step in the right direction for AMC Stock, but what does it mean for the future share price?

A report says that AMC Theaters might become a part of the Russell 1000 Index during the next rebalancing. This would mean AMC would move from the Russell 2000 to the Russell 1000 all within a year or so.

Russell 1000 Index

The Russell 1000 index is a very popular traded index which tracks the performance of the 1000 highest ranking companies across the stock market. Every year the Russell 1000 goes through a rebalancing and rotates stocks in and out each time depending on things such as total market cap for the company, trading volume and share price ect. When a company is added to such an index like the Russell 1000 it can lead to a ton of new buying pressure due to the heavily traded index.

Source: Google stocks

AMC Stock will soar

AMC stock has had a ton of reasons to finally move up towards all-time highs any moment now. Some of these bullish catalysts include things like the current short interest AMC has. With around 23-24% short interest AMC stock is once again heading towards a short squeeze in the retail investor’s opinion.

AMC Stock also has over 190 million shares on loan as of now. There is a good chance that institutions have lent out all the shares that were available to lend out at this point and now retail investors or the AMC Apes are likely loaning out their shares through their brokers without even knowing it. This also means that likely retail or individual investors who have bought shares in recent weeks/months have been sold borrowed shares, not actual shares.

AMC stock being added to the Russell 100 could be another reason for more buying pressure leading up to June 24th.

%d bloggers like this: