IMAX (NYSE:IMAX) Given New $39.00 Price Target at Wedbush

Key Points

• Wedbush has increased IMAX's price target from $35.00 to $39.00, indicating a potential upside of 22.03% from its previous close, while maintaining an "outperform" rating.
• IMAX reported earnings of $0.26 per share for the last quarter, exceeding analysts' expectations while generating revenue of $91.68 million, a slight increase of 3.1% year-over-year.
• The company has initiated a $100 million stock buyback program, reflecting the board's belief that the stock is undervalued.

IMAX (NYSE:IMAX - Get Free Report) had its target price lifted by research analysts at Wedbush from $35.00 to $39.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Wedbush's price target would suggest a potential upside of 22.03% from the company's previous close.

IMAX has been the subject of several other reports. Wells Fargo & Company raised their target price on shares of IMAX from $30.00 to $34.00 and gave the company an "overweight" rating in a research note on Friday, July 25th. The Goldman Sachs Group reiterated a "sell" rating on shares of IMAX in a report on Friday, July 25th. Benchmark lifted their price objective on shares of IMAX from $30.00 to $32.00 and gave the stock a "buy" rating in a research report on Friday, July 25th. Roth Capital restated a "buy" rating and set a $36.00 price objective on shares of IMAX in a research note on Wednesday, July 9th. Finally, Wall Street Zen cut shares of IMAX from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $33.70.

IMAX Trading Down 1.1%

IMAX stock opened at $31.96 on Monday. The firm's 50-day moving average price is $28.01 and its two-hundred day moving average price is $26.65. IMAX has a 12-month low of $18.76 and a 12-month high of $32.96. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 53.27, a PEG ratio of 2.17 and a beta of 0.68.

IMAX (NYSE:IMAX - Get Free Report) last announced its quarterly earnings data 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 analysts' expectations of $93.04 million. IMAX had a net margin of 9.04% and a return on equity of 8.62%. The business's revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.18 earnings per share. Equities analysts predict that IMAX will post 0.91 EPS for the current year.

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

Insider Transactions at IMAX

In other IMAX news, VP Robert D. Lister sold 20,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was 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 in the company, valued at approximately $5,294,608.80. This trade represents a 11.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Kenneth Ian Weissman sold 15,072 shares of the firm'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 value of $386,596.80. Following the completion of the transaction, the insider directly owned 26,133 shares in the company, valued at $670,311.45. The trade was a 36.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 23.18% of the company's stock.

Hedge Funds Weigh In On IMAX

A number of hedge funds have recently added to or reduced their stakes in IMAX. TD Waterhouse Canada Inc. grew its position in IMAX by 125.0% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 900 shares of the company's stock worth $25,000 after acquiring an additional 500 shares during the last quarter. Creative Financial Designs Inc. ADV bought a new stake in IMAX during the 1st quarter worth approximately $59,000. Ridgewood Investments LLC bought a new stake in IMAX during the 2nd quarter worth approximately $62,000. Tower Research Capital LLC TRC grew 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 acquiring an additional 2,740 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in shares of IMAX in the first quarter valued at approximately $202,000. 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.

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