IMAX Corporation (NYSE:IMAX) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• IMAX Corporation has received a consensus rating of "Buy" from ten ratings firms, with one hold rating, eight buy ratings, and one strong buy rating, indicating positive market sentiment.
• Analysts have set an average target price of $32.80 for IMAX shares, with several firms recently raising their price targets and maintaining buy ratings.
• IMAX's Board of Directors has approved a $100 million share repurchase plan, which suggests they believe the stock is currently undervalued.

Shares of IMAX Corporation (NYSE:IMAX - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eleven brokerages that are covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $32.80.

A number of equities analysts have issued reports on IMAX shares. Barrington Research reaffirmed an "outperform" rating and set a $32.00 price target on shares of IMAX in a research note on Thursday, July 24th. JPMorgan Chase & Co. reduced their price objective on IMAX from $27.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, April 11th. The Goldman Sachs Group reissued a "sell" rating on shares of IMAX in a research note on Friday, July 25th. B. Riley reissued a "buy" rating and set a $36.00 price objective on shares of IMAX in a research note on Friday, May 16th. Finally, 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.

IMAX Stock Performance

Shares of IMAX stock traded up $0.13 on Monday, reaching $25.79. 245,927 shares of the company were exchanged, compared to its average volume of 930,825. The company's 50-day moving average is $27.66 and its two-hundred day moving average is $25.78. The firm has a market cap of $1.39 billion, a price-to-earnings ratio of 43.16, a P/E/G ratio of 2.05 and a beta of 0.80. IMAX has a 1-year low of $18.76 and a 1-year high of $29.66.

IMAX (NYSE:IMAX - Get Free Report) last posted its earnings results on Thursday, July 24th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.19 by $0.07. IMAX had a return on equity of 8.62% and a net margin of 9.04%. The firm had revenue of $91.68 million for the quarter, compared to analysts' expectations of $93.04 million. During the same period last year, the firm earned $0.18 EPS. The firm's revenue was up 3.1% compared to the same quarter last year. As a group, sell-side analysts forecast that IMAX will post 0.91 earnings per share for the current year.

IMAX announced that its board has authorized a share repurchase program on Thursday, June 12th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 6.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On IMAX

Institutional investors have recently added to or reduced their stakes in the company. Ridgewood Investments LLC acquired a new stake in IMAX during the second quarter valued at approximately $62,000. Creative Financial Designs Inc. ADV acquired a new stake in IMAX during the first quarter valued at approximately $59,000. Tower Research Capital LLC TRC boosted its holdings in IMAX by 415.4% during 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 acquired a new stake in IMAX during the first quarter valued at approximately $202,000. Finally, State of Tennessee Department of Treasury boosted its holdings in IMAX by 19.8% during 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. 93.51% of the stock is owned by institutional investors and hedge funds.

About IMAX

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.