IMAX (NYSE:IMAX) Sets New 1-Year High - Still a Buy?

Key Points

• IMAX shares reached a new 52-week high of $56.11 and were recently trading near $55.10. The stock’s average analyst rating is “Moderate Buy,” with 11 Buy ratings, three Holds and a consensus price target of $55.17.
• IMAX reported stronger-than-expected quarterly results, posting $0.43 in EPS versus $0.30 expected and $102.84 million in revenue versus $96.09 million expected. Revenue increased 12.2% year over year, while analysts forecast full-year EPS of $1.54.
• Institutional ownership remains high at 93.51%, with several major funds increasing or initiating positions. However, insiders sold 507,257 shares worth approximately $26.7 million over the past three months.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s stock price reached a new 52-week high on Friday. The company traded as high as $56.11 and last traded at $55.1020, with a volume of 1328 shares traded. The stock had previously closed at $55.16.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Wedbush increased their price target on shares of IMAX from $46.00 to $54.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Wall Street Zen upgraded shares of IMAX from a "hold" rating to a "buy" rating in a report on Saturday, September 5th. JPMorgan Chase & Co. upped their price objective on shares of IMAX from $47.00 to $50.00 and gave the company an "overweight" rating in a research note on Friday, July 24th. Weiss Ratings raised shares of IMAX from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 16th. Finally, B. Riley Financial increased their target price on shares of IMAX from $52.00 to $61.00 and gave the company a "buy" rating in a report on Monday, August 24th. Eleven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, IMAX presently has an average rating of "Moderate Buy" and a consensus price target of $55.17.

IMAX Stock Performance

The firm has a 50-day moving average of $50.23 and a 200-day moving average of $42.63. The firm has a market capitalization of $3.02 billion, a P/E ratio of 76.65, a price-to-earnings-growth ratio of 1.66 and a beta of 0.40.

IMAX (NYSE:IMAX - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.13. The business had revenue of $102.84 million for the quarter, compared to analysts' expectations of $96.09 million. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The business's quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.26 EPS. Equities analysts anticipate that IMAX Corporation will post 1.54 EPS for the current fiscal year.

Insider Activity

In related news, VP Robert Lister sold 22,500 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $51.58, for a total transaction of $1,160,550.00. Following the completion of the sale, the vice president directly owned 182,375 shares in the company, valued at $9,406,902.50. This represents a 10.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Kenneth Weissman sold 8,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $54.54, for a total transaction of $436,320.00. Following the sale, the insider directly owned 28,205 shares of the company's stock, valued at $1,538,300.70. The trade was a 22.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 507,257 shares of company stock valued at $26,673,571 in the last three months. Corporate insiders own 20.55% of the company's stock.

Hedge Funds Weigh In On IMAX

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of IMAX in the second quarter worth about $115,881,000. Westfield Capital Management Co. LP lifted its holdings in IMAX by 44.6% in the 4th quarter. Westfield Capital Management Co. LP now owns 2,346,486 shares of the company's stock worth $86,726,000 after buying an additional 723,861 shares during the period. Dimensional Fund Advisors LP grew its position in shares of IMAX by 1.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,237,230 shares of the company's stock worth $47,026,000 after buying an additional 23,401 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of IMAX by 51.8% during the second quarter. Wellington Management Group LLP now owns 800,193 shares of the company's stock valued at $31,896,000 after buying an additional 273,122 shares during the period. Finally, Nantahala Capital Management LLC purchased a new position in shares of IMAX during the second quarter valued at approximately $26,228,239. 93.51% of the stock is owned by institutional investors.

IMAX Company Profile

IMAX Corporation NYSE: IMAX is an entertainment technology company that develops and operates premium large-format cinema experiences. Its systems combine specialized projection, immersive sound, large screens and theater design to present feature films, documentaries and other filmed content.

The company provides cinema operators with IMAX projection and sound systems, including its IMAX with Laser technology, as well as theater design, installation and technical support. IMAX also works with filmmakers and studios on content capture, post-production and remastering to optimize movies for its format, including selected 2D and 3D releases.

Founded in 1967, IMAX has expanded from its origins in documentary and institutional film presentations into a global theatrical network.

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