IMAX Corporation (NYSE:IMAX) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts remain broadly bullish on IMAX: Fifteen brokerages assign the stock a “Moderate Buy” consensus, with 11 buy ratings, one strong buy and an average 12-month price target of $57.38.
• IMAX shares opened at $52.52, near the consensus target, after strong quarterly results in which earnings per share and revenue exceeded analyst expectations; revenue rose 12.2% year over year.
• Premium-format demand remains a catalyst, with Christopher Nolan’s The Odyssey reportedly setting an IMAX box-office record, though insider selling—including share sales by the CEO and CFO—provides a counterpoint for investors.

Shares of IMAX Corporation (NYSE:IMAX - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fifteen brokerages that are presently covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $57.38.

Several research analysts recently commented on IMAX shares. Morgan Stanley began coverage on IMAX in a research note on Thursday, September 24th. They set an "overweight" rating and a $63.00 target price for the company. 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. Wall Street Zen raised IMAX from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. The Goldman Sachs Group lifted their price objective on IMAX from $42.00 to $50.00 and gave the company a "neutral" rating in a research note on Friday, September 4th. Finally, Barrington Research lifted their price objective on IMAX from $46.00 to $50.00 and gave the company an "outperform" rating in a research note on Friday, July 24th.

IMAX Stock Up 1.7%

Shares of IMAX stock opened at $52.52 on Wednesday. The firm has a 50 day moving average of $52.55 and a two-hundred day moving average of $44.45. The stock has a market capitalization of $2.88 billion, a PE ratio of 72.95, a P/E/G ratio of 1.45 and a beta of 0.49. IMAX has a 52 week low of $31.27 and a 52 week high of $57.73.

IMAX (NYSE:IMAX - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.30 by $0.13. The business had revenue of $102.84 million for the quarter, compared to analyst estimates of $96.09 million. IMAX had a return on equity of 15.47% and a net margin of 9.84%. The company's revenue was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.26 earnings per share. Analysts expect that IMAX will post 1.69 EPS for the current fiscal year.

More IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Christopher Nolan’s The Odyssey reportedly set an all-time IMAX box-office record, reinforcing the commercial value of premium-format releases and the strength of IMAX’s relationship with major filmmakers. Sustained demand could support higher box-office revenue, theater attendance and future content partnerships. Christopher Nolan’s The Odyssey sets all-time IMAX box office record The Odyssey IMAX Box Office: Hits a Record High
• Positive Sentiment: Nolan’s The Prestige will return to theaters on January 29 for its 20th anniversary, including IMAX and 70mm screenings. The re-release should provide incremental premium-format ticket revenue and further leverage the filmmaker’s appeal, although its financial impact is likely smaller than that of a new blockbuster. Nolan's The Prestige IMAX and 70mm re-release Jan 29 The Prestige 20th Anniversary Re-Release
• Positive Sentiment: A Zacks analysis describes IMAX as a growth stock, citing above-average financial growth and the potential to outperform the broader market. This may support investor enthusiasm, though it represents analyst commentary rather than new company guidance. IMAX is an Incredible Growth Stock

Insider Activity

In related news, CFO Natasha Fernandes sold 20,000 shares of IMAX stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer owned 35,596 shares in the company, valued at $1,944,609.48. The trade was a 35.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Richard L. Gelfond sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $53.23, for a total transaction of $5,323,000.00. Following the transaction, the chief executive officer owned 665,002 shares of the company's stock, valued at $35,398,056.46. This trade represents a 13.07% 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. Insiders have sold a total of 507,257 shares of company stock valued at $26,673,571 over the last three months. 20.55% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On IMAX

A number of large investors have recently modified their holdings of the company. Global Retirement Partners LLC acquired a new position in shares of IMAX during the second quarter worth $85,000. Nykredit A S purchased a new position in IMAX in the second quarter valued at $105,000. Caitong International Asset Management Co. Ltd increased its holdings in IMAX by 159.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,006 shares of the company's stock valued at $111,000 after buying an additional 1,849 shares during the last quarter. Stronghold Wealth Management L.L.C. acquired a new stake in IMAX in the third quarter valued at $200,000. Finally, State of Wyoming acquired a new stake in IMAX in the second quarter valued at $192,000. 93.51% of the stock is owned by hedge funds and other institutional investors.

IMAX Company Profile

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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