IMAX (NYSE:IMAX) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded IMAX from “Buy” to “Hold,” although broader analyst sentiment remains positive: 10 analysts rate it Buy and three Hold, with a Moderate Buy consensus and an average price target of $51.55.
• IMAX exceeded quarterly expectations, reporting $0.43 earnings per share versus the $0.30 consensus and revenue of $102.84 million versus $96.09 million; revenue increased 12.2% year over year.
• Shares opened at $52.93, near their 52-week high, while CEO Richard Gelfond sold 205,504 shares for about $10.9 million under a pre-arranged Rule 10b5-1 plan. Insiders have sold roughly $24 million of stock over the past quarter.

IMAX (NYSE:IMAX - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Several other analysts have also recently commented on the stock. Seaport Research Partners reiterated a "buy" rating and set a $50.00 target price on shares of IMAX in a research report on Wednesday, June 24th. B. Riley Financial raised their price target on IMAX from $48.00 to $52.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Roth Capital lifted their price objective on IMAX from $48.00 to $50.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. HC Wainwright reiterated a "buy" rating on shares of IMAX in a report on Friday, July 24th. Finally, Wells Fargo & Company raised their target price on IMAX from $41.00 to $45.00 and gave the stock an "equal weight" rating in a report on Friday, July 24th. Ten analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $51.55.

IMAX Trading Up 0.4%

Shares of NYSE IMAX opened at $52.93 on Friday. IMAX has a 1 year low of $26.17 and a 1 year high of $54.50. The firm's 50-day moving average is $44.65 and its 200-day moving average is $40.15. The firm has a market capitalization of $2.90 billion, a PE ratio of 73.51, a price-to-earnings-growth ratio of 1.74 and a beta of 0.38.

IMAX (NYSE:IMAX - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.30 by $0.13. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The business had revenue of $102.84 million during the quarter, compared to the consensus estimate of $96.09 million. During the same period in the previous year, the firm posted $0.26 earnings per share. IMAX's revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, equities research analysts anticipate that IMAX will post 1.44 earnings per share for the current fiscal year.

Insider Buying and Selling at IMAX

In other news, CEO Richard L. Gelfond sold 205,504 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $53.27, for a total value of $10,947,198.08. Following the completion of the transaction, the chief executive officer owned 765,002 shares of the company's stock, valued at $40,751,656.54. The trade was a 21.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 456,757 shares of company stock worth $23,984,101 over the last quarter. Company insiders own 20.55% of the company's stock.

Institutional Trading of IMAX

Hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd lifted its holdings in IMAX by 28.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,489 shares of the company's stock worth $55,000 after acquiring an additional 332 shares in the last quarter. Triumph Capital Management increased its holdings in shares of IMAX by 3.0% in the second quarter. Triumph Capital Management now owns 17,295 shares of the company's stock worth $689,000 after acquiring an additional 504 shares in the last quarter. ProShare Advisors LLC increased its holdings in shares of IMAX by 6.8% in the fourth quarter. ProShare Advisors LLC now owns 8,000 shares of the company's stock worth $296,000 after acquiring an additional 511 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of IMAX by 0.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 108,781 shares of the company's stock worth $4,021,000 after purchasing an additional 546 shares during the period. Finally, Quarry LP raised its position in shares of IMAX by 166.8% during the fourth quarter. Quarry LP now owns 875 shares of the company's stock worth $32,000 after purchasing an additional 547 shares during the period. Institutional investors and hedge funds own 93.51% of the company's stock.

Key Stories Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Rosenblatt Securities reiterated a Buy rating and established a $60 price target, signaling continued confidence in IMAX’s growth prospects and potential upside. Rosenblatt reiterates Buy rating
• Positive Sentiment: The Odyssey has reportedly surpassed $1.29 billion globally and become IMAX’s biggest release ever. The result highlights strong audience demand for IMAX presentations and could support additional box-office-related revenue and future studio partnerships. The Odyssey becomes IMAX’s biggest release
• Positive Sentiment: Demand for Dune: Part Three appears strong, with early 70mm IMAX screenings nearly selling out and reports of heavy ticket demand. This points to potentially robust attendance and premium-ticket economics for upcoming releases. Dune IMAX 70mm screenings nearly sell out
• Neutral Sentiment: IMAX amended Chief Legal Officer and Senior Executive Vice President Robert D. Lister’s employment agreement on August 19. The update may provide management continuity, but no major financial or strategic change was disclosed. IMAX extends chief legal officer agreement
• Negative Sentiment: CEO Richard Gelfond sold a combined 456,757 shares from August 18–20 for approximately $24 million, reducing his direct ownership by a sizable amount. The transactions were made under a pre-arranged Rule 10b5-1 plan, which lessens concerns about a sudden loss of confidence, but the selling could still pressure sentiment while IMAX trades at an elevated valuation. SEC insider trading filing

IMAX Company Profile

IMAX Corporation is a global leader in immersive entertainment technologies, specializing in the design, manufacture and distribution of high-resolution cameras, projectors, and proprietary software solutions that enhance both film production and theatrical exhibition. The company licenses its premium large-format system to theatre owners and filmmakers around the world, enabling audiences to experience movies with greater clarity, scale and sound fidelity. IMAX also offers turnkey theatre development services, assisting cinema operators with auditorium design, installation and custom branding to optimize the customer experience.

Founded in 1967 and headquartered in Mississauga, Ontario, IMAX has built a reputation for pioneering film-format innovations, including its patented dual 15-perforation, 70-millimeter projection system.

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