Wells Fargo & Company Increases IMAX (NYSE:IMAX) Price Target to $40.00

Key Points

• Wells Fargo & Company has increased the price target for IMAX to $40.00, suggesting a potential upside of 26.71% from its previous close.
• IMAX's earnings exceeded analysts' expectations with $0.47 earnings per share for the quarter, significantly up from last year's $0.35 per share.
• Despite the positive outlook, IMAX shares traded down 2.7% on Friday, closing at $31.57.

IMAX (NYSE:IMAX - Get Free Report) had its price target increased by stock analysts at Wells Fargo & Company from $34.00 to $40.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 26.71% from the stock's previous close.

Several other research analysts have also commented on IMAX. B. Riley reaffirmed a "buy" rating on shares of IMAX in a research note on Friday, October 10th. Benchmark boosted their price objective on shares of IMAX from $30.00 to $32.00 and gave the stock a "buy" rating in a research note on Friday, July 25th. Barrington Research reissued an "outperform" rating and issued a $37.00 price objective on shares of IMAX in a research note on Thursday. Weiss Ratings reissued a "hold (c+)" rating on shares of IMAX in a research note on Wednesday, October 8th. Finally, Roth Capital boosted their price objective on shares of IMAX from $36.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, October 14th. Nine investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $35.80.

IMAX Trading Down 2.7%

Shares of IMAX stock traded down $0.87 on Friday, reaching $31.57. The company's stock had a trading volume of 140,187 shares, compared to its average volume of 940,884. The stock's fifty day simple moving average is $30.76 and its 200-day simple moving average is $27.75. IMAX has a 1 year low of $20.17 and a 1 year high of $34.14. The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of 52.64, a price-to-earnings-growth ratio of 2.05 and a beta of 0.62.

IMAX (NYSE:IMAX - Get Free Report) last posted its earnings results on Thursday, October 23rd. The company reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.31 by $0.16. IMAX had a net margin of 9.04% and a return on equity of 8.62%. The firm had revenue of $106.65 million during the quarter, compared to analyst estimates of $102.88 million. During the same period last year, the firm posted $0.35 earnings per share. IMAX's revenue for the quarter was up 16.6% compared to the same quarter last year. Equities research analysts forecast that IMAX will post 0.91 earnings per share for the current year.

Insider Activity

In other IMAX news, insider Kenneth Ian Weissman sold 15,072 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $25.65, for a total value of $386,596.80. Following the sale, the insider owned 26,133 shares in the company, valued at approximately $670,311.45. This represents a 36.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Robert D. Lister sold 20,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $32.80, for a total value of $656,000.00. Following the completion of the sale, the vice president owned 161,421 shares in the company, valued at approximately $5,294,608.80. This represents a 11.02% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 23.18% of the company's stock.

Institutional Investors Weigh In On IMAX

Hedge funds have recently bought and sold shares of the stock. Jupiter Asset Management Ltd. boosted its position in IMAX by 805.9% in the 1st quarter. Jupiter Asset Management Ltd. now owns 469,504 shares of the company's stock worth $12,371,000 after purchasing an additional 417,677 shares in the last quarter. Nuveen LLC purchased a new position in shares of IMAX during the 1st quarter valued at approximately $4,438,000. Ameriprise Financial Inc. lifted 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 valued at $52,019,000 after buying an additional 150,552 shares in the last quarter. Mizuho Markets Americas LLC lifted 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 valued at $18,721,000 after buying an additional 114,800 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in IMAX by 3.4% in the 1st quarter. Northern Trust Corp now owns 354,233 shares of the company's stock valued at $9,334,000 after purchasing an additional 11,588 shares in the last quarter. Hedge funds and other institutional investors own 93.51% of the company's stock.

About IMAX

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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