AMC Entertainment Holdings Inc ( AMC ) shares are trading modestly higher Tuesday morning, bouncing off a new all-time low, even after the company disclosed late Monday that certain investors may resell up to 17.74 million Class A shares under a new prospectus supplement. Here’s what investors need to know.

AMC Entertainment ( AMC ) shares are trending. Why is AMC stock trading higher?

AMC Registers Share Resale Under Shelf Offering

In an 8-K filing, AMC said it filed the prospectus supplement to register the resale of those shares by selling stockholders under its existing shelf registration.

The company said the shares were issued as payment of the New 2029 Notes consent fee and emphasized that it will not receive any proceeds from any sale of the stock by those holders. A separate filing says the registered shares total 17,739,549 and may be sold from time to time by the named holders.

AMC Stock Dilution Concerns Remain in Focus

While the filings do not represent a new primary stock sale by AMC itself, they could still keep dilution concerns in focus because they make shares available for resale into the market.

AMC also reiterated in the prospectus that its stock is "highly speculative," citing extreme volatility, prior dilution and the potential for additional future share issuance. As of March 16, the company said it had 557.96 million shares outstanding.

AMC RSI Trends Show Neutral Momentum

AMC's RSI has mostly stayed in the neutral range over the past year, with occasional spikes into overbought territory above 70 and dips into oversold levels near 30.

Recently, the RSI is hovering in the low-to-mid 30s, suggesting the stock is nearing oversold conditions but not yet showing strong momentum in either direction.

AMC Shares Edge Higher Tuesday Morning

AMC Price Action: AMC Entertainment ( AMC ) shares were up 1.89% at $1.08 at the time of publication on Tuesday. The stock hit 52-week lows on Tuesday before bouncing and moving higher for the session, according to Benzinga Pro data.

Image: Shutterstock