IMAX (NYSE:IMAX) CEO Sells 205,504 Shares

Key Points

• CEO Richard Gelfond sold 205,504 IMAX shares for approximately $10.95 million at an average price of $53.27 under a pre-arranged Rule 10b5-1 plan. His remaining stake fell 21.17% to 765,002 shares.
• IMAX reported stronger-than-expected quarterly results, with EPS of $0.43 versus the $0.30 consensus and revenue of $102.84 million, up 12.2% year over year.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $51.55, while shares recently traded near their 52-week high at $52.87.

IMAX Corporation (NYSE:IMAX - Get Free Report) CEO Richard Gelfond sold 205,504 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $53.27, for a total transaction of $10,947,198.08. Following the completion of the sale, the chief executive officer owned 765,002 shares of the company's stock, valued at approximately $40,751,656.54. This represents a 21.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

IMAX Price Performance

NYSE IMAX traded down $0.84 during midday trading on Thursday, hitting $52.87. 1,272,142 shares of the company traded hands, compared to its average volume of 1,201,651. IMAX Corporation has a 52 week low of $25.56 and a 52 week high of $54.50. The company's 50-day simple moving average is $44.22 and its 200-day simple moving average is $39.93. The company has a market cap of $2.90 billion, a PE ratio of 73.43, a price-to-earnings-growth ratio of 1.67 and a beta of 0.38.

IMAX (NYSE:IMAX - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.13. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The business had revenue of $102.84 million for the quarter, compared to the consensus estimate of $96.09 million. During the same period in the prior year, the firm posted $0.26 earnings per share. The business's quarterly revenue was up 12.2% on a year-over-year basis. On average, research analysts predict that IMAX Corporation will post 1.44 earnings per share for the current year.

Analyst Ratings Changes

Several research analysts have recently weighed in on IMAX shares. Seaport Research Partners restated a "buy" rating and set a $50.00 target price on shares of IMAX in a report on Wednesday, June 24th. JPMorgan Chase & Co. boosted their price objective on IMAX from $47.00 to $50.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $42.00 target price on shares of IMAX in a research note on Thursday, July 23rd. Roth Capital lifted their price target on IMAX from $48.00 to $50.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Finally, HC Wainwright reissued a "buy" rating on shares of IMAX in a report on Friday, July 24th. Ten research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $51.55.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC acquired a new position in shares of IMAX during the third quarter worth about $27,000. Quarry LP grew its holdings in IMAX by 166.8% during the 4th quarter. Quarry LP now owns 875 shares of the company's stock worth $32,000 after acquiring an additional 547 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of IMAX by 2,310.4% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company's stock valued at $38,000 after purchasing an additional 1,109 shares during the last quarter. Torren Management LLC acquired a new stake in shares of IMAX in the 4th quarter valued at $40,000. Finally, Aster Capital Management DIFC Ltd raised its holdings in shares of IMAX by 863.0% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company's stock valued at $62,000 after purchasing an additional 1,493 shares in the last quarter. 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: “The Odyssey” is a major success for IMAX. The film has surpassed $1.29 billion globally and is being described as IMAX’s biggest release ever. Nearly 20,000 fans attended IMAX screenings at Odeon, while BFI IMAX reportedly named it the venue’s all-time box-office leader. The performance supports strong premium-format demand and IMAX’s revenue outlook. The Odyssey passes $1.29 billion and becomes IMAX's biggest release ever
• Positive Sentiment: Demand for “Dune: Part Three” is exceptionally strong. Early 70mm IMAX showings are nearly sold out, presales reportedly overwhelmed booking websites, and scarce tickets are being resold at steep prices. This points to robust upcoming attendance, pricing power and continued interest in IMAX’s large-format experience. Early IMAX 70mm Dune showings nearly sell out
• Positive Sentiment: Analyst support remains constructive. Rosenblatt Securities reaffirmed its “buy” rating and set a $60 price target, implying additional upside from the cited market level. Rosenblatt Securities rating
• Neutral Sentiment: Some 70mm venues experienced projector or mechanical issues during “The Odyssey,” highlighting the limited availability and operational complexity of legacy film projection, although these reports appear localized. San Antonio’s 70mm IMAX projector
• Negative Sentiment: The immediate pressure appears more valuation- and momentum-related than fundamental: IMAX trades near its yearly high after a substantial advance, while its high earnings multiple leaves less room for disappointment. Ticket scarcity and scalping also create publicity risks if consumers cannot access screenings.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source