Bank of America Corp DE Sells 67,594 Shares of IMAX Corporation $IMAX

Key Points

• Bank of America reduced its IMAX stake by 13.7%, selling 67,594 shares and retaining 424,105 shares worth approximately $16.1 million. Institutional investors and hedge funds collectively own 93.51% of the company.
• IMAX reported quarterly EPS of $0.43 versus the $0.30 consensus estimate, while revenue rose 12.2% year over year to $102.84 million. Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $51.55.
• IMAX shares were trading near their 12-month high at $52.87, but CEO Richard Gelfond sold 456,757 shares worth nearly $24 million over 90 days under a pre-arranged Rule 10b5-1 plan, which may weigh on investor sentiment despite not necessarily signaling a negative business outlook.

Bank of America Corp DE decreased its position in shares of IMAX Corporation (NYSE:IMAX - Free Report) by 13.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 424,105 shares of the company's stock after selling 67,594 shares during the period. Bank of America Corp DE owned 0.77% of IMAX worth $16,120,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. CIBC Private Wealth Group LLC bought a new stake in shares of IMAX in the third quarter valued at about $27,000. Quarry LP grew its position in IMAX by 166.8% during the fourth quarter. Quarry LP now owns 875 shares of the company's stock worth $32,000 after buying an additional 547 shares in the last quarter. Torren Management LLC bought a new position in IMAX during the fourth quarter valued at about $40,000. Caitong International Asset Management Co. Ltd raised its holdings in IMAX by 2,310.4% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company's stock valued at $38,000 after acquiring an additional 1,109 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd raised its holdings in IMAX by 863.0% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company's stock valued at $62,000 after acquiring an additional 1,493 shares in the last quarter. 93.51% of the stock is owned by institutional investors and hedge funds.

Key IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and set a $60 price target, implying further upside from recent trading levels. Benzinga analyst rating report
• Positive Sentiment: The Odyssey has surpassed $1.29 billion globally and is being described as IMAX’s biggest release ever, reinforcing the value of the company’s premium large-format screens and supporting potential box-office and licensing revenue. The Odyssey becomes IMAX’s biggest release
• Positive Sentiment: Demand for Dune: Part Three appears exceptionally strong, with IMAX 70mm screenings selling out or nearly selling out, booking websites reportedly facing heavy traffic, and tickets being resold at substantial markups. This suggests strong near-term attendance and premium-format demand. Early Dune IMAX 70mm showings nearly sell out
• Neutral Sentiment: CEO Richard L. Gelfond sold a combined 456,757 IMAX shares from August 18–20 for approximately $24.0 million. All three transactions were executed under a pre-arranged Rule 10b5-1 plan, reducing the likelihood that the sales reflect a newly negative view of the business, although they may weigh on sentiment after the stock’s strong rally. He continues to own 665,002 shares. SEC insider trading filing
• Negative Sentiment: The concentrated CEO selling is the clearest near-term bearish catalyst, particularly with IMAX trading near its 12-month high and at an elevated earnings multiple. Investors may interpret the sales as profit-taking and a source of additional supply even though they were preplanned.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of IMAX from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 16th. HC Wainwright reissued a "buy" rating on shares of IMAX in a research note on Friday, July 24th. Wells Fargo & Company increased their price target on shares of IMAX from $41.00 to $45.00 and gave the stock an "equal weight" rating in a research report on Friday, July 24th. Rosenblatt Securities restated a "buy" rating and set a $60.00 price target on shares of IMAX in a research note on Wednesday. Finally, Wedbush lifted their price objective on IMAX from $46.00 to $54.00 and gave the company an "outperform" rating in a report on Friday, July 24th. Ten analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $51.55.

IMAX Stock Performance

IMAX opened at $52.87 on Friday. The firm's 50-day simple moving average is $44.44 and its 200-day simple moving average is $40.06. IMAX Corporation has a twelve month low of $25.56 and a twelve month high of $54.50. The firm has a market cap of $2.90 billion, a price-to-earnings ratio of 73.43, a PEG ratio of 1.77 and a beta of 0.38.

IMAX (NYSE:IMAX - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 EPS for the quarter, beating analysts' consensus estimates of $0.30 by $0.13. The firm had revenue of $102.84 million for the quarter, compared to analyst estimates of $96.09 million. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The company's revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.26 earnings per share. As a group, sell-side analysts anticipate that IMAX Corporation will post 1.44 EPS for the current fiscal year.

Insider Activity at IMAX

In related news, CEO Richard L. Gelfond sold 205,504 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $53.27, for a total transaction of $10,947,198.08. Following the sale, the chief executive officer directly owned 765,002 shares in the company, valued at $40,751,656.54. This represents a 21.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 456,757 shares of company stock valued at $23,984,101. 20.55% of the stock is owned by insiders.

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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