IMAX (NYSE:IMAX) Price Target Cut to $52.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut its IMAX price target from $55 to $52 and maintained an “equal weight” rating; the new target implies 9.31% upside from the prior close.
• Analyst sentiment remains broadly positive: IMAX has a “Moderate Buy” consensus rating and an average price target of $57.92.
• IMAX reported quarterly EPS of $2.21, beating the $1.02 consensus, while revenue rose 63.6% year over year to $174.55 million, also topping expectations.

IMAX (NYSE:IMAX - Get Free Report) had its target price lowered by investment analysts at Wells Fargo & Company from $55.00 to $52.00 in a research report issued on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price would suggest a potential upside of 9.31% from the stock's previous close.

A number of other research analysts have also recently issued reports on the stock. Roth Capital reaffirmed a "buy" rating and issued a $62.00 target price on shares of IMAX in a report on Friday, October 23rd. Weiss Ratings raised IMAX from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. B. Riley Financial boosted their price target on IMAX from $61.00 to $64.00 and gave the stock a "buy" rating in a research note on Thursday, October 8th. Wedbush upped their price target on IMAX from $54.00 to $60.00 and gave the stock an "outperform" rating in a report on Wednesday, October 14th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $65.00 price target on shares of IMAX in a report on Wednesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, IMAX presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.92.

IMAX Stock Performance

IMAX stock traded down $0.56 during midday trading on Friday, reaching $47.57. The company's stock had a trading volume of 165,925 shares, compared to its average volume of 1,138,908. The firm has a market capitalization of $2.61 billion, a PE ratio of 66.06, a P/E/G ratio of 1.31 and a beta of 0.54. IMAX has a fifty-two week low of $32.71 and a fifty-two week high of $57.73. The stock's 50 day simple moving average is $52.20 and its 200 day simple moving average is $43.15.

IMAX (NYSE:IMAX - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported $2.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $1.19. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The business had revenue of $174.55 million for the quarter, compared to analysts' expectations of $168.53 million. During the same period in the prior year, the company posted $0.47 EPS. The business's revenue for the quarter was up 63.6% on a year-over-year basis. Equities analysts predict that IMAX will post 1.88 earnings per share for the current year.

Insider Buying and Selling at IMAX

In other IMAX news, VP Robert Lister sold 22,500 shares of the firm's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $51.58, for a total transaction of $1,160,550.00. Following the completion of the transaction, the vice president directly owned 182,375 shares in the company, valued at approximately $9,406,902.50. This trade represents a 10.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Natasha Fernandes sold 20,000 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $54.63, for a total transaction of $1,092,600.00. Following the transaction, the chief financial officer owned 35,596 shares of the company's stock, valued at $1,944,609.48. This trade represents a 35.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 507,257 shares of company stock valued at $26,673,571 in the last quarter. Insiders own 20.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in IMAX during the 2nd quarter worth about $115,881,000. Nantahala Capital Management LLC purchased a new position in IMAX in the 2nd quarter valued at about $26,228,239. Bank of America Corp DE purchased a new position in IMAX in the 2nd quarter valued at about $17,420,000. Royal Bank of Canada lifted its holdings in IMAX by 126.5% in the 1st quarter. Royal Bank of Canada now owns 75,777 shares of the company's stock valued at $2,880,000 after purchasing an additional 362,021 shares in the last quarter. Finally, Primecap Management Co. CA acquired a new stake in shares of IMAX during the 2nd quarter worth about $10,902,000. 93.51% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Record results substantially beat expectations. IMAX reported $2.21 in quarterly EPS versus consensus near $1.02, while revenue reached $174.55 million, up 63.6% year over year and above forecasts. The company credited record box-office performance, led by The Odyssey. IMAX third-quarter results
• Positive Sentiment: More premium-screen demand may support results. The Odyssey is set to return to IMAX 70mm theaters in December, while the strong performance of the film helped drive the company’s quarterly box-office record. Variety article on IMAX’s record quarter
• Neutral Sentiment: Theatrical-release terms remain a point of debate. CEO Rich Gelfond questioned why some theater chains would not screen Netflix’s The Further Mis-Adventures of Cliff Booth during its planned two-week IMAX run. The dispute highlights potential friction over release windows, but the articles don’t quantify any financial impact. Deadline article on the Cliff Booth debate
• Negative Sentiment: Valuation and post-earnings trading may be weighing on the stock. The shares are lower despite the earnings beat and reports of an initial rally. With the supplied trailing P/E at 66.83, investors may be taking profits or reassessing how much growth is already priced in; this is a possible market explanation, not a negative catalyst identified in the articles. Yahoo Finance analysis of IMAX’s earnings beat

About IMAX

IMAX Corporation NYSE: IMAX is a global entertainment technology company that specializes in premium large-format cinema experiences. The company designs and supplies specialized theater systems that combine large screens, high-resolution projection, advanced sound, and immersive theater design to present feature films, documentaries, live events, and other content.

IMAX supports its theater partners with projection and sound equipment, theater design and installation services, and technology and maintenance support.

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