IMAX Corporation (NYSE:IMAX) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• IMAX has an average analyst rating of “Moderate Buy” from 12 brokerages, with 10 buy ratings and 2 hold ratings. The average 1-year price target is $48.00.
• The company reported better-than-expected quarterly earnings, posting EPS of $0.17 versus the $0.15 estimate and revenue of $81.38 million versus $79.82 million expected. Revenue was still down 6.1% from the same period last year.
• IMAX has also been in the spotlight due to sale speculation, with reports that it is exploring strategic options and holding early-stage discussions with potential buyers. No formal deal process or bidder has been confirmed yet.

IMAX Corporation (NYSE:IMAX - Get Free Report) has received an average recommendation of "Moderate Buy" from the twelve brokerages that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $48.00.

Several equities research analysts recently commented on the company. Rosenblatt Securities restated a "buy" rating and set a $47.00 target price on shares of IMAX in a research report on Monday, April 20th. Wall Street Zen downgraded IMAX from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. The Goldman Sachs Group upped their price target on IMAX from $37.00 to $41.00 and gave the stock a "neutral" rating in a research note on Monday, March 2nd. Weiss Ratings raised IMAX from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, May 8th. Finally, Seaport Research Partners upped their price target on IMAX from $43.00 to $45.00 and gave the stock a "buy" rating in a research note on Wednesday, April 8th.

IMAX Price Performance

Shares of IMAX stock opened at $39.14 on Friday. IMAX has a one year low of $24.20 and a one year high of $43.16. The stock's 50-day moving average is $36.79 and its 200 day moving average is $36.71. The firm has a market cap of $2.15 billion, a price-to-earnings ratio of 60.21, a PEG ratio of 1.39 and a beta of 0.37.

IMAX (NYSE:IMAX - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.15 by $0.02. IMAX had a return on equity of 13.61% and a net margin of 9.08%.The company had revenue of $81.38 million for the quarter, compared to analyst estimates of $79.82 million. During the same quarter in the prior year, the company earned $0.13 EPS. The firm's revenue for the quarter was down 6.1% compared to the same quarter last year. On average, sell-side analysts expect that IMAX will post 1.34 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Richard L. Gelfond sold 135,046 shares of the company's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $37.82, for a total transaction of $5,107,439.72. Following the transaction, the chief executive officer directly owned 765,002 shares of the company's stock, valued at approximately $28,932,375.64. This represents a 15.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kevin Douglas sold 330,200 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $37.82, for a total value of $12,488,164.00. Following the transaction, the insider directly owned 3,657,450 shares in the company, valued at approximately $138,324,759. This trade represents a 8.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,054,284 shares of company stock worth $40,062,532. 20.55% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC acquired a new position in IMAX during the 3rd quarter worth approximately $27,000. Quarry LP raised its stake in shares of IMAX by 166.8% in the fourth quarter. Quarry LP now owns 875 shares of the company's stock worth $32,000 after purchasing an additional 547 shares during the last quarter. Jones Financial Companies Lllp raised its stake in shares of IMAX by 43.8% in the third quarter. Jones Financial Companies Lllp now owns 1,041 shares of the company's stock worth $34,000 after purchasing an additional 317 shares during the last quarter. Clearstead Advisors LLC purchased a new stake in shares of IMAX in the third quarter worth approximately $35,000. Finally, Torren Management LLC purchased a new stake in shares of IMAX in the fourth quarter worth approximately $40,000. 93.51% of the stock is owned by institutional investors and hedge funds.

More IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: IMAX is reportedly exploring a sale, and analysts say the company could draw interest from major entertainment and technology buyers, boosting takeover hopes. IMAX Is Exploring a Sale
• Positive Sentiment: News that IMAX has held early-stage discussions with potential suitors fueled a strong share move, even as reports emphasized that no formal deal process has been launched yet. IMAX is exploring sale, WSJ reports
• Positive Sentiment: Media coverage highlighted IMAX’s appeal as a premium cinema asset that has outperformed a weakening theater industry, reinforcing the idea that a strategic buyer could pay up. IMAX has bucked the trend as the movie-theater business fades
• Neutral Sentiment: Several entertainment outlets also reported the sale chatter and IMAX’s stock surge, but these stories mainly repeated the same early-stage speculation rather than confirming a transaction. Imax Stock Surges on Hollywood Takeover Talk
• Neutral Sentiment: Industry commentary suggested possible buyers could include Apple, Netflix, Amazon, or other media/tech players, but no bidder has been identified and a deal may never happen. Wall Street thinks IMAX is ripe for a sale. Here's who could buy it

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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