IMAX Corporation (NYSE:IMAX) Receives $32.80 Average Price Target from Analysts

Key Points

• IMAX Corporation has received a consensus rating of "Moderate Buy" from analysts, with the average 12-month target price set at $32.80.
• Recent insider trading activity includes VP Robert D. Lister selling 20,000 shares at an average price of $32.80, reducing their stake by over 11%.
• A stock buyback program has been approved, allowing IMAX to repurchase $100 million in outstanding shares, indicating management's belief in the stock's undervaluation.

Shares of IMAX Corporation (NYSE:IMAX - Get Free Report) have been given an average rating of "Moderate Buy" by the eleven brokerages that are presently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $33.30.

A number of analysts have recently weighed in on IMAX shares. Wall Street Zen lowered shares of IMAX from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. The Goldman Sachs Group reissued a "sell" rating on shares of IMAX in a research note on Friday, July 25th. Wedbush increased their target price on shares of IMAX from $34.00 to $35.00 and gave the company an "outperform" rating in a research note on Friday, July 25th. Benchmark increased their target price on shares of IMAX from $30.00 to $32.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Finally, Rosenblatt Securities increased their target price on shares of IMAX from $35.00 to $37.00 and gave the company a "buy" rating in a research note on Friday, July 25th.

IMAX Stock Performance

Shares of NYSE:IMAX traded down $0.35 during trading on Tuesday, reaching $31.96. The company had a trading volume of 1,075,616 shares, compared to its average volume of 1,096,045. The firm's fifty day moving average is $28.01 and its 200 day moving average is $26.63. The firm has a market capitalization of $1.72 billion, a PE ratio of 53.27, a price-to-earnings-growth ratio of 2.19 and a beta of 0.68. IMAX has a twelve month low of $18.76 and a twelve month high of $32.96.

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

IMAX announced that its board has approved a stock repurchase plan on Thursday, June 12th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 6.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at IMAX

In related news, VP Robert D. Lister sold 20,000 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $32.80, for a total transaction of $656,000.00. Following the completion of the sale, the vice president directly owned 161,421 shares of the company's stock, valued at $5,294,608.80. This represents a 11.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kenneth Ian Weissman sold 15,072 shares of the company's stock in a transaction that occurred 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 completion of the sale, the insider owned 26,133 shares of the company's stock, valued at approximately $670,311.45. This trade represents a 36.58% decrease in their position. The disclosure for this sale can be found here. 23.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On IMAX

Several hedge funds have recently made changes to their positions in IMAX. TD Waterhouse Canada Inc. lifted its position in shares of IMAX by 125.0% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 900 shares of the company's stock valued at $25,000 after acquiring an additional 500 shares in the last quarter. Creative Financial Designs Inc. ADV purchased a new stake in shares of IMAX in the 1st quarter valued at approximately $59,000. Ridgewood Investments LLC purchased a new stake in shares of IMAX in the 2nd quarter valued at approximately $62,000. Tower Research Capital LLC TRC lifted its position in shares of IMAX by 194.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,148 shares of the company's stock valued at $116,000 after acquiring an additional 2,740 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of IMAX in the 1st quarter valued at approximately $202,000. 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.