IMAX (NYSE:IMAX) Hits New 1-Year High Following Analyst Upgrade

Key Points

• IMAX's share price reached a new 52-week high after Wedbush upgraded their price target from $35.00 to $39.00, indicating increased investor confidence.
• Despite upgrades from several analysts, Goldman Sachs maintained a "sell" rating on IMAX shares, showcasing mixed sentiment among market experts.
• Insider transactions revealed that key executives sold significant shares of IMAX stock, with Kenneth Ian Weissman and VP Robert D. Lister reducing their stakes, raising questions about future performance.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday after Wedbush raised their price target on the stock from $35.00 to $39.00. Wedbush currently has an outperform rating on the stock. IMAX traded as high as $32.98 and last traded at $32.85, with a volume of 20687 shares traded. The stock had previously closed at $32.66.

Several other research analysts also recently weighed in on IMAX. The Goldman Sachs Group reiterated a "sell" rating on shares of IMAX in a report on Friday, July 25th. Wells Fargo & Company lifted their price target on IMAX from $30.00 to $34.00 and gave the company an "overweight" rating in a report on Friday, July 25th. Barrington Research increased their price objective on shares of IMAX from $32.00 to $37.00 and gave the stock an "outperform" rating in a report on Friday. Wall Street Zen downgraded shares of IMAX from a "strong-buy" rating to a "buy" rating in a report on Friday, August 22nd. Finally, Roth Capital reaffirmed a "buy" rating and set a $36.00 price target on shares of IMAX in a research report on Wednesday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $33.70.

Insiders Place Their Bets

In other IMAX news, insider Kenneth Ian Weissman sold 15,072 shares of IMAX 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 transaction, the insider owned 26,133 shares of the company's stock, valued at $670,311.45. The trade was a 36.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, VP Robert D. Lister sold 20,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $32.80, for a total value of $656,000.00. Following the transaction, the vice president directly owned 161,421 shares of the company's stock, valued at $5,294,608.80. This trade represents a 11.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 24.08% of the company's stock.

Hedge Funds Weigh In On IMAX

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. TD Waterhouse Canada Inc. increased its position in shares of IMAX by 125.0% in the second quarter. TD Waterhouse Canada Inc. now owns 900 shares of the company's stock worth $25,000 after acquiring an additional 500 shares in the last quarter. Ridgewood Investments LLC purchased a new stake in shares of IMAX in the second quarter valued at $62,000. Creative Financial Designs Inc. ADV acquired a new position in IMAX during the first quarter valued at $59,000. Tower Research Capital LLC TRC boosted its position in IMAX by 194.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,148 shares of the company's stock worth $116,000 after acquiring an additional 2,740 shares during the period. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of IMAX in the first quarter worth approximately $202,000. 93.51% of the stock is owned by institutional investors.

IMAX Price Performance

The firm has a market capitalization of $1.75 billion, a price-to-earnings ratio of 54.45, a PEG ratio of 2.17 and a beta of 0.68. The firm's fifty day moving average is $28.11 and its 200 day moving average is $26.71.

IMAX (NYSE:IMAX - Get Free Report) last issued its earnings results on Thursday, July 24th. The company reported $0.26 earnings per share (EPS) for the quarter, beating 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 company's revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter last year, the business posted $0.18 EPS. Equities research analysts forecast that IMAX Corporation will post 0.91 EPS for the current fiscal year.

IMAX declared that its board has authorized a share repurchase plan on Thursday, June 12th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 6.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are undervalued.

IMAX Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.