IMAX (NYSE:IMAX) Downgraded to Buy Rating by Wall Street Zen

Key Points

• IMAX has been downgraded from a "strong-buy" rating to a "buy" rating by Wall Street Zen, reflecting changing analyst sentiment on the stock.
• Despite the downgrade, Wedbush and others have increased their price targets for IMAX, with an average target of $32.80, indicating a generally positive outlook.
• IMAX announced a $100 million stock repurchase program, suggesting that the company's board believes the shares are undervalued.

IMAX (NYSE:IMAX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Friday.

Other equities research analysts have also recently issued research reports about the stock. Macquarie increased their target price on shares of IMAX from $30.00 to $32.00 and gave the company an "outperform" rating in a research note on Friday, April 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. B. Riley restated a "buy" rating and set a $36.00 price target on shares of IMAX in a research note on Friday, May 16th. Wells Fargo & Company raised their price target on shares of IMAX from $30.00 to $34.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Finally, The Goldman Sachs Group restated a "sell" rating on shares of IMAX in a research note on Friday, July 25th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $32.80.

IMAX Stock Up 2.2%

Shares of IMAX traded up $0.5850 during mid-day trading on Friday, reaching $27.6350. The company's stock had a trading volume of 1,515,084 shares, compared to its average volume of 941,109. IMAX has a 1 year low of $18.76 and a 1 year high of $29.66. The company has a market cap of $1.49 billion, a price-to-earnings ratio of 44.34, a price-to-earnings-growth ratio of 1.86 and a beta of 0.81. The business 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 posted 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 business had revenue of $91.68 million for the quarter, compared to the consensus estimate of $93.04 million. IMAX had a net margin of 9.04% and a return on equity of 8.62%. IMAX'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 earnings per share. On average, analysts predict that IMAX will post 0.91 earnings per share for the current year.

IMAX declared that its Board of Directors has approved a share buyback program on Thursday, June 12th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at IMAX

In other news, insider Kenneth Ian Weissman sold 15,072 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $25.65, for a total value 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 represents a 36.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 24.08% of the stock is owned by insiders.

Institutional Investors Weigh In On IMAX

Several institutional investors and hedge funds have recently modified their holdings of the stock. 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 worth $25,000 after purchasing an additional 500 shares during the period. Neuberger Berman Group LLC increased its stake in shares of IMAX by 4.1% in the 1st quarter. Neuberger Berman Group LLC now owns 13,838 shares of the company's stock worth $365,000 after acquiring an additional 542 shares in the last quarter. Legal & General Group Plc increased its stake in shares of IMAX by 1.5% in the 2nd quarter. Legal & General Group Plc now owns 50,969 shares of the company's stock worth $1,425,000 after acquiring an additional 756 shares in the last quarter. XTX Topco Ltd increased its stake in shares of IMAX by 3.7% in the 2nd quarter. XTX Topco Ltd now owns 23,541 shares of the company's stock worth $658,000 after acquiring an additional 842 shares in the last quarter. Finally, Mission Wealth Management LP increased its stake in shares of IMAX by 2.9% in the 1st quarter. Mission Wealth Management LP now owns 30,408 shares of the company's stock worth $801,000 after acquiring an additional 845 shares in the last quarter. 93.51% of the stock is owned by hedge funds and other institutional investors.

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.