Stock Alert: AMC Entertainment Hits New 52-week Low On Theatre Closures

(RTTNews) - Shares of AMC Entertainment Holdings Inc. (AMC) are falling 23 percent in the morning trade on Tuesday to a new 52-week low of $2.00 after the theatrical exhibition company said it will close all its U.S. locations for at least six to twelve weeks due to the COVID-19 or coronavirus pandemic.

The stock has traded in a range of $2.00 to $17.07 in the past 52 weeks.

AMC Theatres said that as of Tuesday, March 17, all its locations in the United States will close for at least six to 12 weeks, in compliance with local, state and federal directives. The move is a precautionary measure to help ensure the health and safety of moviegoers and theatre staff.

AMC noted that the COVID-19 situation has developed rapidly throughout the U.S. over the last week. During the last 48 hours, more than a dozen states and major markets have mandated that movie theatres, bars and restaurants must close. In addition, the federal government on Tuesday recommended that no public gatherings take place that are larger than 10 people, making movie theatre operations essentially impossible, the company said.