Barrington Research Forecasts Strong Price Appreciation for IMAX (NYSE:IMAX) Stock

Key Points

• Barrington Research has raised its target price for IMAX from $32.00 to $37.00, indicating a potential upside of 14.41% from its current price.
• IMAX recently reported earnings per share of $0.26, exceeding the consensus estimate of $0.19, with revenue growth of 3.1% year-over-year.
• The company has initiated a $100 million share repurchase program, suggesting that the board believes its shares are currently undervalued.

IMAX (NYSE:IMAX - Free Report) had its price objective raised by Barrington Research from $32.00 to $37.00 in a research report report published on Friday, Marketbeat.com reports. The brokerage currently has an outperform rating on the stock.

Several other research firms also recently weighed in on IMAX. Benchmark lifted their target price on IMAX from $30.00 to $32.00 and gave the stock a "buy" rating in a research report on Friday, July 25th. Roth Capital reiterated a "buy" rating and issued a $36.00 price target on shares of IMAX in a research note on Wednesday, July 9th. The Goldman Sachs Group reaffirmed a "sell" rating on shares of IMAX in a report on Friday, July 25th. Wells Fargo & Company raised their price objective on IMAX from $30.00 to $34.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Finally, Rosenblatt Securities raised their price target on shares of IMAX from $35.00 to $37.00 and gave the stock a "buy" rating in a research report on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, IMAX currently has a consensus rating of "Moderate Buy" and a consensus price target of $33.70.

IMAX Price Performance

Shares of IMAX stock traded up $0.23 during mid-day trading on Friday, hitting $32.89. The company had a trading volume of 201,917 shares, compared to its average volume of 946,127. IMAX has a 52-week low of $19.19 and a 52-week high of $33.06. The stock's 50 day moving average price is $28.11 and its 200-day moving average price is $26.71. The company has a market capitalization of $1.77 billion, a P/E ratio of 54.83, a P/E/G ratio of 2.17 and a beta of 0.68.

IMAX (NYSE:IMAX - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.07. The company had revenue of $91.68 million for the quarter, compared to analysts' expectations of $93.04 million. IMAX had a net margin of 9.04% and a return on equity of 8.62%. IMAX's quarterly revenue was up 3.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.18 earnings per share. On average, equities research analysts expect that IMAX will post 0.91 earnings per share for the current year.

IMAX announced that its Board of Directors has initiated a stock buyback plan on Thursday, June 12th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 6.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at IMAX

In other IMAX news, insider Kenneth Ian Weissman sold 15,072 shares of the company's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $25.65, for a total value of $386,596.80. Following the completion of the sale, the insider directly owned 26,133 shares in the company, valued at $670,311.45. This represents a 36.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Robert D. Lister sold 20,000 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $32.80, for a total value of $656,000.00. Following the completion of the sale, the vice president owned 161,421 shares of the company's stock, valued at approximately $5,294,608.80. The trade was a 11.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. 24.08% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On IMAX

Several large investors have recently modified their holdings of the business. TD Waterhouse Canada Inc. lifted its stake in shares of IMAX by 125.0% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 900 shares of the company's stock valued at $25,000 after purchasing an additional 500 shares during the last quarter. Neuberger Berman Group LLC raised its holdings in shares of IMAX by 4.1% in the 1st quarter. Neuberger Berman Group LLC now owns 13,838 shares of the company's stock valued at $365,000 after buying an additional 542 shares during the period. Legal & General Group Plc raised its holdings in shares of IMAX by 1.5% in the 2nd quarter. Legal & General Group Plc now owns 50,969 shares of the company's stock valued at $1,425,000 after buying an additional 756 shares during the period. XTX Topco Ltd raised its holdings in shares of IMAX by 3.7% in the 2nd quarter. XTX Topco Ltd now owns 23,541 shares of the company's stock valued at $658,000 after buying an additional 842 shares during the period. Finally, Mission Wealth Management LP raised its holdings in shares of IMAX by 2.9% in the 1st quarter. Mission Wealth Management LP now owns 30,408 shares of the company's stock valued at $801,000 after buying an additional 845 shares during the period. Institutional investors and hedge funds own 93.51% of the company's stock.

IMAX Company Profile

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies.