IMAX (NYSE:IMAX) Downgraded to "Hold" Rating by Wells Fargo & Company

Key Points

• Wells Fargo downgraded IMAX from strong-buy to hold, adding to a mixed analyst backdrop that includes several recent rating cuts from other firms.
• Despite the downgrade, IMAX reported better-than-expected quarterly results with EPS of $0.17 versus $0.15 expected and revenue of $81.38 million versus $79.82 million expected, though revenue was still down 6.1% year over year.
• The stock was down 0.7% on the day at $38.96, while analysts overall still rate it a Moderate Buy with a consensus target price of $47.30.

IMAX (NYSE:IMAX - Get Free Report) was downgraded by analysts at Wells Fargo & Company from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

IMAX has been the subject of a number of other research reports. Wall Street Zen downgraded shares of IMAX from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings cut IMAX from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, June 23rd. Barrington Research upped their price target on IMAX from $42.00 to $46.00 and gave the company an "outperform" rating in a research report on Friday, May 1st. Keefe, Bruyette & Woods reiterated a "market perform" rating and set a $60.00 price objective on shares of IMAX in a research report on Friday, May 22nd. Finally, JPMorgan Chase & Co. lowered their price objective on IMAX from $48.00 to $47.00 and set an "overweight" rating on the stock in a research note on Friday, May 1st. Eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $47.30.

IMAX Stock Down 0.7%

IMAX stock opened at $38.96 on Thursday. IMAX has a 52-week low of $24.20 and a 52-week high of $45.52. The firm has a market capitalization of $2.14 billion, a price-to-earnings ratio of 59.94, a PEG ratio of 1.44 and a beta of 0.37. The company has a fifty day simple moving average of $39.24 and a 200-day simple moving average of $37.90.

IMAX (NYSE:IMAX - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.02. The firm had revenue of $81.38 million for the quarter, compared to the consensus estimate of $79.82 million. IMAX had a net margin of 9.08% and a return on equity of 13.61%. The company's revenue for the quarter was down 6.1% on a year-over-year basis. During the same period last year, the firm posted $0.13 earnings per share. On average, research analysts anticipate that IMAX will post 1.3 EPS for the current fiscal year.

Insider Activity

In other news, CEO Richard L. Gelfond sold 8,943 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $37.33, for a total transaction of $333,842.19. Following the completion of the sale, the chief executive officer owned 765,002 shares in the company, valued at $28,557,524.66. This trade represents a 1.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.55% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC acquired a new stake in IMAX during the third quarter worth $27,000. Quarry LP lifted its stake in shares of IMAX by 166.8% in the 4th quarter. Quarry LP now owns 875 shares of the company's stock valued at $32,000 after purchasing an additional 547 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its stake 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 purchased a new position in shares of IMAX during the 4th quarter worth $40,000. Finally, Aster Capital Management DIFC Ltd grew its holdings in shares of IMAX by 863.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company's stock worth $62,000 after purchasing an additional 1,493 shares during the period. 93.51% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Multiple articles highlight intense demand for The Odyssey in IMAX 70mm, with fans traveling long distances, paying premiums, and seeking out scarce showtimes. That kind of buzz supports IMAX’s premium positioning and could translate into stronger box office-related revenue and exhibitor interest. Article Title
• Positive Sentiment: Coverage also notes that IMAX’s limited number of 70mm-capable screens makes the format feel exclusive, which can help sustain premium ticket pricing and strengthen the company’s brand with major filmmakers like Christopher Nolan. Article Title
• Positive Sentiment: IMAX and Goer Dynamics announced a partnership to develop the world’s first IMAX-branded in-vehicle entertainment system, expanding IMAX’s brand into a new premium entertainment category outside traditional theaters. Article Title
• Neutral Sentiment: Several previews say IMAX is expected to report earnings next week, and analysts are watching for growth, but there is no new financial update yet to move the stock on its own. Article Title
• Negative Sentiment: IMAX has said it is not practical to build many more 70mm systems quickly, underscoring supply constraints that may limit how much near-term demand from The Odyssey can be captured. Article Title

About IMAX

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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