IMAX (NYSE:IMAX) Upgraded to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded IMAX to “Buy” from “Hold,” adding to a generally positive analyst consensus. Ten analysts rate the stock a Buy, three rate it a Hold, and the average price target is $54.
• IMAX reported stronger-than-expected quarterly results, with EPS of $0.43 versus the $0.30 consensus estimate and revenue of $102.84 million, up 12.2% year over year.
• Shares opened at $51.72, near their 52-week high of $55.57, while insiders have sold approximately $25.5 million worth of stock over the past 90 days, including substantial sales by the CEO.

IMAX (NYSE:IMAX - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on IMAX. JPMorgan Chase & Co. upped their target price on IMAX from $47.00 to $50.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Seaport Research Partners reissued a "buy" rating and issued a $50.00 price target on shares of IMAX in a research report on Wednesday, June 24th. Wedbush boosted their price objective on shares of IMAX from $46.00 to $54.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Barrington Research boosted their price objective on shares of IMAX from $46.00 to $50.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Finally, Wells Fargo & Company upped their price objective on shares of IMAX from $41.00 to $45.00 and gave the stock an "equal weight" rating in a report on Friday, July 24th. Ten investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, IMAX presently has an average rating of "Moderate Buy" and an average price target of $54.00.

IMAX Price Performance

Shares of NYSE:IMAX opened at $51.72 on Friday. IMAX has a fifty-two week low of $28.93 and a fifty-two week high of $55.57. The business has a 50-day moving average of $46.36 and a two-hundred day moving average of $41.27. The stock has a market capitalization of $2.84 billion, a P/E ratio of 71.83, a P/E/G ratio of 1.66 and a beta of 0.40.

IMAX (NYSE:IMAX - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.13. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The company had revenue of $102.84 million during the quarter, compared to the consensus estimate of $96.09 million. During the same quarter in the prior year, the company posted $0.26 EPS. The firm's revenue was up 12.2% on a year-over-year basis. As a group, research analysts expect that IMAX will post 1.49 EPS for the current fiscal year.

Insider Transactions at IMAX

In other news, insider Kenneth Weissman sold 8,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $54.54, for a total transaction of $436,320.00. Following the completion of the transaction, the insider owned 28,205 shares of the company's stock, valued at approximately $1,538,300.70. This represents a 22.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Richard Gelfond sold 205,504 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $53.27, for a total transaction of $10,947,198.08. Following the completion of the sale, the chief executive officer owned 765,002 shares of the company's stock, valued at approximately $40,751,656.54. The trade was a 21.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 484,757 shares of company stock worth $25,513,021. 20.55% of the stock is currently owned by company insiders.

Institutional Trading of IMAX

Institutional investors and hedge funds have recently modified their holdings of the company. California State Teachers Retirement System raised its stake in shares of IMAX by 3,785.1% in the second quarter. California State Teachers Retirement System now owns 2,104,728 shares of the company's stock valued at $83,894,000 after purchasing an additional 2,050,554 shares in the last quarter. Nykredit A S bought a new position in IMAX in the second quarter worth $105,000. Triumph Capital Management boosted its stake in IMAX by 3.0% during the second quarter. Triumph Capital Management now owns 17,295 shares of the company's stock worth $689,000 after buying an additional 504 shares in the last quarter. Susquehanna Fundamental Investments LLC acquired a new stake in IMAX during the second quarter worth $380,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of IMAX by 5,002.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 140,838 shares of the company's stock valued at $5,614,000 after acquiring an additional 138,078 shares in the last quarter. 93.51% of the stock is currently owned by institutional investors.

Key Stories Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: The Odyssey’s IMAX 70mm engagement has been extended through the end of September, indicating sustained demand for premium-format screenings and potentially supporting IMAX’s box-office revenue. The Odyssey Is Extending Its IMAX 70MM Run Once Again Through the End of September
• Positive Sentiment: Multiple reports say The Odyssey’s ticket sales have surpassed $450 million, and theaters are extending its IMAX 70mm run. The result reinforces the commercial appeal of blockbuster films released in IMAX and could improve near-term exhibitor and technology revenue. The Odyssey extends Imax 70mm run, ticket sales surpass $450 million
• Neutral Sentiment: Coverage of Steph Curry’s basketball project involving 20 IMAX cameras highlights IMAX’s ability to attract sports and event-content partnerships, although the immediate financial impact is unclear. Steph Curry IMAX cameras feature
• Negative Sentiment: Goldman Sachs raised its IMAX price target from $42 to $50 but maintained a Neutral rating. The new target remains about 3.3% below the reported $51.72 share price, suggesting Goldman believes much of the expected upside is already reflected. With IMAX trading at a high earnings multiple, the valuation signal may weigh on the stock despite the target increase.

IMAX Company Profile

IMAX Corporation is a global leader in immersive entertainment technologies, specializing in the design, manufacture and distribution of high-resolution cameras, projectors, and proprietary software solutions that enhance both film production and theatrical exhibition. The company licenses its premium large-format system to theatre owners and filmmakers around the world, enabling audiences to experience movies with greater clarity, scale and sound fidelity. IMAX also offers turnkey theatre development services, assisting cinema operators with auditorium design, installation and custom branding to optimize the customer experience.

Founded in 1967 and headquartered in Mississauga, Ontario, IMAX has built a reputation for pioneering film-format innovations, including its patented dual 15-perforation, 70-millimeter projection system.

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