IMAX (NYSE:IMAX) Hits New 12-Month High - Time to Buy?

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 stock price reached a new 52-week high during mid-day trading on Thursday . The stock 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.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Benchmark increased their target price on IMAX from $30.00 to $32.00 and gave the stock a "buy" rating in a research report on Friday, July 25th. Roth Capital reiterated a "buy" rating and set a $36.00 target price on shares of IMAX in a research report on Wednesday, July 9th. Wedbush increased their target price on IMAX from $34.00 to $35.00 and gave the stock an "outperform" rating in a research report on Friday, July 25th. The Goldman Sachs Group reiterated a "sell" rating on shares of IMAX in a research report on Friday, July 25th. Finally, Barrington Research reiterated an "outperform" rating and set a $32.00 target price on shares of IMAX in a research report on Thursday, July 24th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, IMAX currently has a consensus rating of "Moderate Buy" and an average price target of $32.80.

IMAX Stock Down 1.0%

The business's fifty day moving average is $27.56 and its two-hundred day moving average is $26.45. The stock has a market capitalization of $1.74 billion, a PE ratio of 54.03, a price-to-earnings-growth ratio of 2.20 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 analysts' consensus estimates of $0.19 by $0.07. The firm 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%. IMAX's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same period last year, the firm posted $0.18 earnings per share. Sell-side analysts expect that IMAX Corporation will post 0.91 EPS for the current fiscal 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 shares. This repurchase authorization authorizes the company to reacquire up to 6.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, VP Robert D. Lister sold 20,000 shares of IMAX stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $32.80, for a total value of $656,000.00. Following the completion of the transaction, the vice president owned 161,421 shares in the company, valued at approximately $5,294,608.80. The trade was a 11.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Kenneth Ian Weissman sold 15,072 shares of IMAX stock in a transaction that occurred on Thursday, August 14th. The stock was 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 approximately $670,311.45. This trade represents a 36.58% decrease in their position. The disclosure for this sale can be found here. 23.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On IMAX

Institutional investors and hedge funds have recently modified their holdings of the stock. TD Waterhouse Canada Inc. boosted its holdings 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. Ridgewood Investments LLC purchased a new stake in IMAX in the second quarter worth $62,000. Creative Financial Designs Inc. ADV bought a new stake in shares of IMAX during the first quarter worth $59,000. Tower Research Capital LLC TRC lifted its position 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 worth $116,000 after purchasing an additional 2,740 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of IMAX during the first quarter valued at $202,000. Hedge funds and other institutional investors 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.