Nantahala Capital Management LLC Has $23.93 Million Stock Holdings in IMAX Corporation $IMAX

Key Points

• Nantahala Capital Management LLC has reduced its IMAX shares by 35.1%, selling 492,100 shares during the first quarter, leaving them with 908,251 shares and making IMAX their 14th largest holding.
• IMAX's recent quarterly earnings beat analysts' expectations, reporting $0.26 per share against a forecasted $0.19, with revenue showing a year-over-year increase of 3.1%.
• The company announced a $100 million share buyback program, signifying confidence from its board that IMAX shares are currently undervalued.

Nantahala Capital Management LLC trimmed its position in IMAX Corporation (NYSE:IMAX - Free Report) by 35.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 908,251 shares of the company's stock after selling 492,100 shares during the period. IMAX makes up approximately 1.0% of Nantahala Capital Management LLC's investment portfolio, making the stock its 14th largest holding. Nantahala Capital Management LLC owned 1.69% of IMAX worth $23,932,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of IMAX. Creative Financial Designs Inc. ADV bought a new stake in shares of IMAX in the first quarter valued at about $59,000. Tower Research Capital LLC TRC lifted its holdings in shares of IMAX by 415.4% in the fourth quarter. Tower Research Capital LLC TRC now owns 7,236 shares of the company's stock valued at $185,000 after purchasing an additional 5,832 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new stake in shares of IMAX in the first quarter valued at about $202,000. State of Tennessee Department of Treasury lifted its holdings in shares of IMAX by 19.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 9,827 shares of the company's stock valued at $252,000 after purchasing an additional 1,627 shares in the last quarter. Finally, Fox Run Management L.L.C. bought a new stake in shares of IMAX in the first quarter valued at about $289,000. 93.51% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Rosenblatt Securities upped their target price on IMAX from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Friday, July 25th. B. Riley reiterated a "buy" rating and set a $36.00 target price on shares of IMAX in a report on Friday, May 16th. Benchmark upped their target price on IMAX from $30.00 to $32.00 and gave the stock a "buy" rating in a report on Friday, July 25th. Wedbush upped their target price on IMAX from $34.00 to $35.00 and gave the stock an "outperform" rating in a report on Friday, July 25th. Finally, Barrington Research reiterated an "outperform" rating and set a $32.00 target price on shares of IMAX in a report on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $32.80.

Insider Transactions at IMAX

In related news, insider Kenneth Ian Weissman sold 15,072 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $25.65, for a total transaction of $386,596.80. Following the sale, the insider owned 26,133 shares of the company's stock, valued at $670,311.45. This represents a 36.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 23.18% of the stock is owned by corporate insiders.

IMAX Stock Performance

Shares of NYSE IMAX traded down $0.02 during trading hours on Wednesday, reaching $29.29. 926,093 shares of the stock were exchanged, compared to its average volume of 883,067. The firm has a market capitalization of $1.58 billion, a price-to-earnings ratio of 48.81, a P/E/G ratio of 1.97 and a beta of 0.68. IMAX Corporation has a 52 week low of $18.76 and a 52 week high of $29.66. The stock's fifty day simple moving average is $26.96 and its 200 day simple moving average is $26.18.

IMAX (NYSE:IMAX - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.19 by $0.07. The business had revenue of $91.68 million for the quarter, compared to the consensus estimate of $93.04 million. IMAX had a return on equity of 8.62% and a net margin of 9.04%.The firm's quarterly revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.18 earnings per share. Research analysts predict that IMAX Corporation will post 0.91 EPS for the current fiscal year.

IMAX announced that its Board of Directors has initiated a share buyback program on Thursday, June 12th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 6.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its stock is undervalued.

IMAX 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.