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

Key Points

• IMAX Corporation received an average recommendation of “Moderate Buy” from eleven brokerages, with price targets ranging from $30.00 to $37.00.
• Insider Kenneth Ian Weissman sold 15,072 shares at an average price of $25.65, reducing his ownership by 36.58%.
• The company reported earnings per share of $0.26 for the last quarter, surpassing expectations and showing a 3.1% year-over-year revenue increase.

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

IMAX has been the topic of several research reports. Wedbush upped their price objective on shares of IMAX from $34.00 to $35.00 and gave the stock an "outperform" rating in a report on Friday, July 25th. B. Riley restated a "buy" rating and set a $36.00 price objective on shares of IMAX in a report on Friday, May 16th. Barrington Research restated an "outperform" rating and set a $32.00 price objective on shares of IMAX in a report on Thursday, July 24th. Wall Street Zen downgraded shares of IMAX from a "strong-buy" rating to a "buy" rating in a report on Friday. Finally, Rosenblatt Securities upped their price objective on shares of IMAX from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Friday, July 25th.

IMAX Trading Up 2.2%

NYSE IMAX traded up $0.5850 on Friday, hitting $27.6350. 1,515,084 shares of the company were exchanged, compared to its average volume of 930,037. The company has a market cap of $1.49 billion, a PE ratio of 46.06, a PEG ratio of 1.86 and a beta of 0.81. IMAX has a 12 month low of $18.76 and a 12 month high of $29.66. The stock has a fifty day moving average of $26.93 and a 200-day moving average of $26.04.

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

IMAX declared that its board has authorized a stock buyback program on Thursday, June 12th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 6.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other IMAX news, insider Kenneth Ian Weissman sold 15,072 shares of IMAX stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $25.65, for a total transaction of $386,596.80. Following the transaction, the insider directly owned 26,133 shares of the company's stock, valued at $670,311.45. The trade was a 36.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 24.08% of the company's stock.

Institutional Trading of IMAX

Several institutional investors and hedge funds have recently made changes to their positions in IMAX. TD Waterhouse Canada Inc. raised its holdings in shares of IMAX by 125.0% in the second quarter. TD Waterhouse Canada Inc. now owns 900 shares of the company's stock valued at $25,000 after purchasing an additional 500 shares during the last quarter. Creative Financial Designs Inc. ADV purchased a new stake in shares of IMAX in the first quarter valued at about $59,000. Ridgewood Investments LLC purchased a new stake in shares of IMAX in the second quarter valued at about $62,000. Tower Research Capital LLC TRC raised its holdings in shares of IMAX by 194.6% in the second quarter. Tower Research Capital LLC TRC now owns 4,148 shares of the company's stock valued at $116,000 after purchasing an additional 2,740 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised 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 during the last quarter. Hedge funds and other institutional investors own 93.51% of the company's stock.

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.