IMAX's (IMAX) "Outperform" Rating Reaffirmed at Wedbush

Key Points

• Wedbush reaffirmed its "Outperform" rating on IMAX and set a $46 price target, implying roughly a 27% upside from the current share price.
• IMAX beat quarterly estimates with $0.58 EPS vs. $0.43 expected and revenue of $125.21M (up 35.1% YoY); the stock trades near $36.20 with a consensus analyst target of $43.70 (Moderate Buy).
• Company insiders sold about 1,045,341 shares (~$39.7M) last quarter—including CEO Richard Gelfond—while insiders still own 23.18% of shares and institutional ownership is roughly 93.51%.

IMAX (NYSE:IMAX - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Wedbush in a research note issued to investors on Thursday,Benzinga reports. They currently have a $46.00 target price on the stock. Wedbush's price objective would suggest a potential upside of 27.06% from the company's current price.

IMAX has been the subject of several other research reports. The Goldman Sachs Group raised their target price on shares of IMAX from $37.00 to $41.00 and gave the stock a "neutral" rating in a research note on Monday, March 2nd. Weiss Ratings restated a "buy (b)" rating on shares of IMAX in a research note on Monday, December 29th. JPMorgan Chase & Co. raised their target price on shares of IMAX from $47.00 to $48.00 and gave the stock an "overweight" rating in a research note on Thursday, February 26th. Macquarie Infrastructure raised their target price on shares of IMAX from $39.00 to $44.00 and gave the stock an "outperform" rating in a research note on Thursday, January 15th. Finally, Barrington Research restated an "outperform" rating and issued a $42.00 target price on shares of IMAX in a research note on Monday, January 26th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, IMAX currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.70.

IMAX Price Performance

Shares of IMAX stock traded down $0.02 during mid-day trading on Thursday, hitting $36.20. The stock had a trading volume of 136,428 shares, compared to its average volume of 1,089,063. IMAX has a fifty-two week low of $22.54 and a fifty-two week high of $43.16. The firm has a market cap of $1.95 billion, a PE ratio of 58.32, a PEG ratio of 1.63 and a beta of 0.41. The company's 50-day simple moving average is $38.19 and its 200-day simple moving average is $36.25.

IMAX (NYSE:IMAX - Get Free Report) last released its earnings results on Wednesday, February 25th. The company reported $0.58 EPS for the quarter, topping the consensus estimate of $0.43 by $0.15. IMAX had a net margin of 8.50% and a return on equity of 13.53%. The company had revenue of $125.21 million during the quarter, compared to analysts' expectations of $120.30 million. During the same quarter last year, the business earned $0.27 EPS. The business's revenue was up 35.1% on a year-over-year basis. On average, analysts expect that IMAX will post 1.31 EPS for the current year.

Insider Transactions at IMAX

In other news, CEO Richard L. Gelfond sold 135,046 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $37.82, for a total value of $5,107,439.72. Following the completion of the transaction, the chief executive officer owned 765,002 shares in the company, valued at $28,932,375.64. This trade represents a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kevin Douglas sold 330,200 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $37.82, for a total transaction of $12,488,164.00. Following the completion of the transaction, the insider owned 3,657,450 shares of the company's stock, valued at $138,324,759. This represents a 8.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,045,341 shares of company stock valued at $39,728,689 in the last quarter. Insiders own 23.18% of the company's stock.

Hedge Funds Weigh In On IMAX

Several hedge funds have recently added to or reduced their stakes in the business. SG Americas Securities LLC increased its holdings in IMAX by 284.0% during the 1st quarter. SG Americas Securities LLC now owns 18,887 shares of the company's stock valued at $718,000 after acquiring an additional 13,968 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in IMAX by 159.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,006 shares of the company's stock valued at $111,000 after acquiring an additional 1,849 shares in the last quarter. Sit Investment Associates Inc. increased its holdings in IMAX by 184.9% during the 4th quarter. Sit Investment Associates Inc. now owns 50,350 shares of the company's stock valued at $1,861,000 after acquiring an additional 32,675 shares in the last quarter. Virtu Financial LLC purchased a new position in IMAX during the 4th quarter valued at about $493,000. Finally, Wellington Management Group LLP increased its holdings in IMAX by 41.7% during the 4th quarter. Wellington Management Group LLP now owns 839,303 shares of the company's stock valued at $31,021,000 after acquiring an additional 247,009 shares in the last quarter. 93.51% of the stock is currently owned by hedge funds and other institutional investors.

About IMAX

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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