IMAX (NYSE:IMAX) Stock Price Crosses Above 50-Day Moving Average - Here's What Happened

Key Points

• IMAX shares crossed above their 50-day moving average of $52.18, reaching $53.11 before last trading at $50.44; the stock’s 200-day average was $43.48.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and three Holds, an overall “Moderate Buy” consensus, and an average price target of $55.17.
• IMAX exceeded quarterly expectations, reporting adjusted earnings of $0.43 per share versus the $0.30 consensus and revenue of $102.84 million, up 12.2% year over year; however, insiders sold 507,257 shares worth about $26.7 million over the past three months.

IMAX Corporation (NYSE:IMAX - Get Free Report)'s share price crossed above its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $52.18 and traded as high as $53.11. IMAX shares last traded at $50.4420, with a volume of 1,639,463 shares.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on IMAX. Wall Street Zen downgraded IMAX from a "buy" rating to a "hold" rating in a research report on Saturday, September 26th. Rosenblatt Securities increased their price target on IMAX from $60.00 to $65.00 and gave the company a "buy" rating in a research report on Wednesday, September 9th. Benchmark restated a "buy" rating on shares of IMAX in a research note on Monday, June 22nd. Wells Fargo & Company boosted their price target on IMAX from $41.00 to $45.00 and gave the stock an "equal weight" rating in a research report on Friday, July 24th. Finally, HC Wainwright reiterated a "buy" rating on shares of IMAX in a research note on Friday, July 24th. Eleven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $55.17.

IMAX Stock Down 4.1%

The company has a market cap of $2.77 billion, a P/E ratio of 70.06, a price-to-earnings-growth ratio of 1.64 and a beta of 0.49. The stock has a 50 day moving average price of $52.18 and a two-hundred day moving average price of $43.48.

IMAX (NYSE:IMAX - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.13. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The business had revenue of $102.84 million during the quarter, compared to analysts' expectations of $96.09 million. During the same period last year, the firm posted $0.26 EPS. The firm's revenue for the quarter was up 12.2% compared to the same quarter last year. Equities analysts anticipate that IMAX Corporation will post 1.53 EPS for the current year.

Insider Buying and Selling at IMAX

In related news, CFO Natasha Fernandes sold 20,000 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $54.63, for a total transaction of $1,092,600.00. Following the transaction, the chief financial officer directly owned 35,596 shares of the company's stock, valued at approximately $1,944,609.48. This trade represents a 35.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Robert Lister sold 22,500 shares of IMAX stock in a transaction dated Thursday, September 10th. The stock was 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 owned 182,375 shares of the company's stock, valued at $9,406,902.50. This trade represents a 10.98% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 507,257 shares of company stock worth $26,673,571. Insiders own 20.55% of the company's stock.

Institutional Investors Weigh In On IMAX

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in IMAX during the 2nd quarter worth $115,881,000. Dimensional Fund Advisors LP lifted its position in shares of IMAX by 1.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,237,230 shares of the company's stock valued at $47,026,000 after acquiring an additional 23,401 shares during the period. Wellington Management Group LLP grew its holdings in shares of IMAX by 51.8% during the 2nd quarter. Wellington Management Group LLP now owns 800,193 shares of the company's stock worth $31,896,000 after purchasing an additional 273,122 shares in the last quarter. Nantahala Capital Management LLC acquired a new stake in shares of IMAX during the 2nd quarter worth $26,228,239. Finally, Marsico Capital Management LLC bought a new position in shares of IMAX in the fourth quarter worth $18,149,000. 93.51% of the stock is currently owned by institutional investors.

About IMAX

IMAX Corporation NYSE: IMAX is an entertainment technology company that develops and licenses premium-format motion picture systems for cinemas and other venues. Its offerings combine specialized projection and display technology, immersive sound systems, theater design, and large-format screens to provide audiences with an enhanced presentation experience.

The company supports the theatrical release of films through its IMAX DMR (Digital Media Remastering) process, which adapts and optimizes content for IMAX presentations.

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