IMAX Corporation (NYSE:IMAX) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Wall Street maintains a positive view of IMAX: Fourteen brokerages rate the stock a consensus “Moderate Buy,” with an average 12-month price target of $55.17. Recent targets range as high as $63 from Morgan Stanley.
• IMAX reported stronger-than-expected quarterly results: Earnings per share reached $0.43 versus the $0.30 consensus estimate, while revenue rose 12.2% year over year to $102.84 million.
• Shares have rallied but insider selling is notable: IMAX traded near its 52-week high at $56.18, while insiders sold 507,257 shares worth approximately $26.7 million over the past three months. Institutional ownership remains high at 93.51%.

IMAX Corporation (NYSE:IMAX - Get Free Report) has been given an average recommendation of "Moderate Buy" by the fourteen brokerages that are presently covering the stock, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $55.17.

IMAX has been the topic of a number of recent analyst reports. B. Riley Financial raised their target price on shares of IMAX from $52.00 to $61.00 and gave the company a "buy" rating in a research note on Monday, August 24th. Roth Capital boosted their price target on shares of IMAX from $50.00 to $60.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. Morgan Stanley began coverage on shares of IMAX in a report on Thursday. They issued an "overweight" rating and a $63.00 price target on the stock. JPMorgan Chase & Co. raised their price objective on shares of IMAX from $47.00 to $50.00 and gave the company an "overweight" rating in a research report on Friday, July 24th. Finally, Wells Fargo & Company lifted 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.

Key Headlines Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Morgan Stanley initiated coverage of IMAX with an Overweight rating and a $63 price target, calling the company an important or “must-have” platform for movie theaters. The endorsement supports the view that IMAX can continue gaining share as exhibitors emphasize premium experiences. CNBC Morgan Stanley IMAX coverage
• Positive Sentiment: Analyst commentary suggests the success of major releases such as The Odyssey could help reshape the moviegoing experience and reinforce demand for IMAX screens, potentially supporting higher attendance and premium ticket pricing. The Odyssey and IMAX stock analysis
• Positive Sentiment: Disney+’s VisionQuest is reportedly receiving an early IMAX release, adding another high-profile title to the company’s content pipeline and broadening IMAX’s relationship with major studios and streaming platforms. Disney VisionQuest IMAX release
• Positive Sentiment: New Meta virtual-reality glasses reportedly include 5K displays and IMAX support, giving the brand potential exposure beyond traditional cinemas and creating a possible long-term licensing or partnership opportunity. Meta VR glasses with IMAX support
• Neutral Sentiment: Coverage of IMAX, Dolby and Meta’s immersive-entertainment efforts highlights the strategic value of premium formats, although the direct financial contribution from VR glasses remains uncertain. IMAX Dolby and Meta immersive entertainment
• Neutral Sentiment: Broader marketing of IMAX and 4DX may further differentiate premium theaters from standard cinemas, but the article does not establish a specific near-term earnings impact. IMAX and 4DX theater marketing

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 stock was sold at an average price of $54.54, for a total value of $436,320.00. Following the completion of the transaction, the insider directly owned 28,205 shares in the company, valued at approximately $1,538,300.70. This represents a 22.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 value of $1,092,600.00. Following the transaction, the chief financial officer directly owned 35,596 shares in the company, valued at approximately $1,944,609.48. This represents a 35.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 507,257 shares of company stock worth $26,673,571. 20.55% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in IMAX. BlackRock Inc. purchased a new stake in shares of IMAX in the 2nd quarter valued at $115,881,000. Westfield Capital Management Co. LP grew its holdings in shares of IMAX by 44.6% during the 4th quarter. Westfield Capital Management Co. LP now owns 2,346,486 shares of the company's stock valued at $86,726,000 after purchasing an additional 723,861 shares during the last quarter. Dimensional Fund Advisors LP raised its position in IMAX by 1.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,237,230 shares of the company's stock worth $47,026,000 after purchasing an additional 23,401 shares during the period. Wellington Management Group LLP raised its position in IMAX by 51.8% in the 2nd quarter. Wellington Management Group LLP now owns 800,193 shares of the company's stock worth $31,896,000 after purchasing an additional 273,122 shares during the period. Finally, Nantahala Capital Management LLC bought a new stake in IMAX in the second quarter worth $26,228,239. 93.51% of the stock is owned by hedge funds and other institutional investors.

IMAX Stock Up 1.8%

NYSE:IMAX opened at $56.18 on Friday. The business's 50-day moving average price is $50.57 and its two-hundred day moving average price is $42.72. IMAX has a twelve month low of $30.74 and a twelve month high of $56.68. The stock has a market cap of $3.08 billion, a P/E ratio of 78.03, a PEG ratio of 1.71 and a beta of 0.40.

IMAX (NYSE:IMAX - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.13. The firm had revenue of $102.84 million during the quarter, compared to the consensus estimate of $96.09 million. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The company's revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter last year, the company posted $0.26 EPS. On average, equities research analysts expect that IMAX will post 1.54 EPS for the current fiscal year.

IMAX Company Profile

IMAX Corporation NYSE: IMAX is an entertainment technology company that develops and operates premium large-format cinema experiences. Its systems combine specialized projection, immersive sound, large screens and theater design to present feature films, documentaries and other filmed content.

The company provides cinema operators with IMAX projection and sound systems, including its IMAX with Laser technology, as well as theater design, installation and technical support. IMAX also works with filmmakers and studios on content capture, post-production and remastering to optimize movies for its format, including selected 2D and 3D releases.

Founded in 1967, IMAX has expanded from its origins in documentary and institutional film presentations into a global theatrical network.

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