IMAX (NYSE:IMAX) Sets New 52-Week High - Here's What Happened

Key Points

• IMAX's stock reached a new 52-week high of $33.09 during trading, closing at $33.19 with a volume of 88,664 shares.
• The company recently reported $0.26 earnings per share, surpassing analyst estimates and showing a 3.1% revenue increase year-over-year.
• IMAX has announced a $100 million share repurchase plan, reflecting management's belief that its shares are undervalued.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as $33.09 and last traded at $33.19, with a volume of 88664 shares trading hands. The stock had previously closed at $32.75.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Roth Capital reaffirmed a "buy" rating and issued a $36.00 price objective on shares of IMAX in a research note on Wednesday, July 9th. The Goldman Sachs Group reaffirmed a "sell" rating on shares of IMAX in a research note on Friday, July 25th. Rosenblatt Securities upped their price objective on shares of IMAX from $35.00 to $37.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Wall Street Zen lowered shares of IMAX from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. Finally, Wedbush upped their price objective on shares of IMAX from $35.00 to $39.00 and gave the company an "outperform" rating in a research note on Monday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $33.70.

IMAX Stock Up 1.3%

The stock has a market capitalization of $1.79 billion, a P/E ratio of 55.30, a price-to-earnings-growth ratio of 2.19 and a beta of 0.68. The business's 50 day simple moving average is $28.61 and its two-hundred day simple moving average is $27.04.

IMAX (NYSE:IMAX - Get Free Report) last released its quarterly earnings data 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. IMAX had a net margin of 9.04% and a return on equity of 8.62%. The firm had revenue of $91.68 million for the quarter, compared to analyst estimates of $93.04 million. During the same period last year, the firm earned $0.18 earnings per share. The business's quarterly revenue was up 3.1% compared to the same quarter last year. Analysts predict that IMAX Corporation will post 0.91 earnings per share for the current year.

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

Insiders Place Their Bets

In related news, VP Robert D. Lister sold 20,000 shares of the firm's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $32.80, for a total transaction 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Kenneth Ian Weissman sold 15,072 shares of the firm's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $25.65, for a total transaction of $386,596.80. Following 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. 24.08% of the stock is currently owned by company insiders.

Institutional Trading of IMAX

A number of large investors have recently added to or reduced their stakes in the stock. TD Waterhouse Canada Inc. raised its position in 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 during the period. Neuberger Berman Group LLC increased its stake in shares of IMAX by 4.1% in the first quarter. Neuberger Berman Group LLC now owns 13,838 shares of the company's stock worth $365,000 after purchasing an additional 542 shares in the last quarter. Legal & General Group Plc increased its stake in shares of IMAX by 1.5% in the second quarter. Legal & General Group Plc now owns 50,969 shares of the company's stock worth $1,425,000 after purchasing an additional 756 shares in the last quarter. XTX Topco Ltd increased its stake in shares of IMAX by 3.7% in the second quarter. XTX Topco Ltd now owns 23,541 shares of the company's stock worth $658,000 after purchasing an additional 842 shares in the last quarter. Finally, Mission Wealth Management LP increased its stake in shares of IMAX by 2.9% in the first quarter. Mission Wealth Management LP now owns 30,408 shares of the company's stock worth $801,000 after purchasing an additional 845 shares in the last quarter. Hedge funds and other 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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