IMAX (NYSE:IMAX) Shares Pass Above 50 Day Moving Average - Here's Why

Key Points

• IMAX shares have surpassed their 50-day moving average, trading as high as $34.14, signaling bullish market sentiment for the stock.
• Analysts have provided a range of positive ratings for IMAX, with targets raised by firms like Wedbush to $39.00, reflecting confidence in the company’s future performance.
• IMAX's Board of Directors has authorized a $100 million stock buyback program, indicating a belief that the company's shares are currently undervalued.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s share price passed above its 50 day moving average during trading on Friday . The stock has a 50 day moving average of $28.92 and traded as high as $34.14. IMAX shares last traded at $33.74, with a volume of 958,128 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Wedbush raised their price target on IMAX from $35.00 to $39.00 and gave the company an "outperform" rating in a report on Monday, September 22nd. Wells Fargo & Company raised 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. Rosenblatt Securities raised their price target on IMAX from $35.00 to $37.00 and gave the company a "buy" rating in a report on Friday, July 25th. Roth Capital reissued a "buy" rating and set a $36.00 price target on shares of IMAX in a report on Wednesday, July 9th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of IMAX in a report on Saturday, September 27th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $33.70.

IMAX Price Performance

The stock has a market cap of $1.81 billion, a PE ratio of 56.23, a price-to-earnings-growth ratio of 2.24 and a beta of 0.62. The stock has a 50-day moving average price of $28.92 and a two-hundred day moving average price of $27.20.

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

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

Insider Activity at IMAX

In related news, insider Kenneth Ian Weissman sold 15,072 shares of the business'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 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Robert D. Lister sold 20,000 shares of IMAX stock in a transaction on 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 transaction, the vice president directly owned 161,421 shares in the company, valued at $5,294,608.80. This represents a 11.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 23.18% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Jupiter Asset Management Ltd. raised its position in shares of IMAX by 805.9% in the first quarter. Jupiter Asset Management Ltd. now owns 469,504 shares of the company's stock worth $12,371,000 after acquiring an additional 417,677 shares during the period. North Star Investment Management Corp. acquired a new position in shares of IMAX during the 1st quarter worth about $290,000. Nuveen LLC acquired a new position in shares of IMAX during the 1st quarter worth about $4,438,000. Ameriprise Financial Inc. raised its position in shares of IMAX by 8.3% during the 1st quarter. Ameriprise Financial Inc. now owns 1,974,068 shares of the company's stock worth $52,019,000 after purchasing an additional 150,552 shares during the last quarter. Finally, Mizuho Markets Americas LLC raised its position in shares of IMAX by 19.3% during the 1st quarter. Mizuho Markets Americas LLC now owns 710,489 shares of the company's stock worth $18,721,000 after purchasing an additional 114,800 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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