AMC Entertainment Holdings Inc (NYSE: AMC) announced Wednesday morning it appointed CEO Adam Aron as its chairman of the board. Aron will serve as both chairman and CEO of AMC Entertainment moving forward.

Why It’s Important: There’s no one else that can do the job that Aron is doing, co-host Joe Kernan said on CNBC’s “Squawk Box.”

It’s pretty unbelievable to see a stock go from $2 per share to $42 per share, he said. Aron has been able to balance improving the fundamentals of the company, while also satisfying and maintaining “the loyalty of the apes,” Kernan added.

“Apes” is a term often used to refer to retail investors of AMC Entertainment who relentlessly buy and hold the stock.

Related Link: 5 Things You Might Not Know About AMC CEO Adam Aron

What’s Next: Co-host Andrew Ross Sorkin agreed that he thinks Aron has done a terrific job “given the hand that he’s been dealt.” However, he posed the question of whether or not the success of AMC’s stock should be attributed to Aron.

Aron’s ability to keep the apes happy has kept the stock price elevated, Kernan said.

Price Action: AMC has traded as high as $72.62 and as low as $1.91 over a 52-week period.

At last check Wednesday, the stock was down 2.27% at $42.15.

Photo: Jeff from Flickr.

Read More