IMAX (NYSE:IMAX) Sets New 12-Month High - What's Next?

Key Points

• IMAX Corporation's share price reached a new 52-week high of $31.61, closing at $31.05 prior to this peak, with a trading volume of 12,552 shares.
• Major analysts have increased their price targets for IMAX, with Wells Fargo raising it from $30.00 to $34.00, while Rosenblatt Securities set a target of $37.00.
• The company announced a $100 million stock buyback plan, indicating that management believes the stock may be undervalued.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $31.41 and last traded at $31.61, with a volume of 12552 shares traded. The stock had previously closed at $31.05.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on IMAX shares. The Goldman Sachs Group reaffirmed a "sell" rating on shares of IMAX in a report on Friday, July 25th. Wells Fargo & Company upped their price objective on IMAX from $30.00 to $34.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Rosenblatt Securities upped their price objective on IMAX from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Friday, July 25th. Wedbush upped their price objective on IMAX from $34.00 to $35.00 and gave the stock an "outperform" rating in a report on Friday, July 25th. Finally, Roth Capital reaffirmed a "buy" rating and set a $36.00 price objective on shares of IMAX in a report on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, IMAX currently has an average rating of "Moderate Buy" and an average target price of $32.80.

IMAX Stock Performance

The company's fifty day simple moving average is $27.24 and its two-hundred day simple moving average is $26.30. The stock has a market capitalization of $1.70 billion, a PE ratio of 52.83, a P/E/G ratio of 2.08 and a beta of 0.68.

IMAX (NYSE:IMAX - Get Free Report) last posted its earnings results on Thursday, July 24th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.07. IMAX had a net margin of 9.04% and a return on equity of 8.62%. The firm had revenue of $91.68 million during the quarter, compared to the consensus estimate of $93.04 million. During the same period last year, the firm posted $0.18 EPS. The firm's revenue for the quarter was up 3.1% on a year-over-year basis. Sell-side analysts forecast that IMAX Corporation will post 0.91 EPS for the current fiscal year.

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

Insider Activity at IMAX

In related news, insider Kenneth Ian Weissman sold 15,072 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $25.65, for a total transaction of $386,596.80. Following the sale, the insider owned 26,133 shares of the company's stock, valued at $670,311.45. This trade represents a 36.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 23.18% of the stock is currently owned by insiders.

Institutional Trading of IMAX

A number of large investors have recently made changes to their positions in the stock. Caxton Associates LLP acquired a new stake in shares of IMAX during the second quarter valued at $228,000. Tower Research Capital LLC TRC boosted its stake in shares of IMAX by 194.6% during 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 during the last quarter. Orbis Allan Gray Ltd boosted its stake in shares of IMAX by 31.7% during the second quarter. Orbis Allan Gray Ltd now owns 5,113,033 shares of the company's stock valued at $142,960,000 after acquiring an additional 1,230,267 shares during the last quarter. HRT Financial LP boosted its stake in shares of IMAX by 145.5% during the second quarter. HRT Financial LP now owns 103,271 shares of the company's stock valued at $2,887,000 after acquiring an additional 61,200 shares during the last quarter. Finally, Engineers Gate Manager LP boosted its stake in shares of IMAX by 152.3% during the second quarter. Engineers Gate Manager LP now owns 20,491 shares of the company's stock valued at $573,000 after acquiring an additional 12,369 shares during the last quarter. Institutional investors and hedge funds own 93.51% of the company's stock.

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.

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