Zacks Investment Research lowered shares of Imax Corporation (NYSE:IMAX) from a hold rating to a sell rating in a research report sent to investors on Tuesday, July 11th.

According to Zacks, “Shares of IMAX have underperformed the Zacks categorized Movie/TV Production/Distribution industry on a year-to-date basis.  Furthermore, the disappointing Memorial Day weekend turnout has hurt the stock. In fact, IMAX  has had a disappointing run at the box office over the past few months. With the top line struggling, IMAX announced that it intends to trim its workforce by approximately 14%, in a bid to drive its bottom line and increase efficiencies.  With the IMAX stock struggling, the company’s board of directors cleared a shareholder friendly measure aimed at boosting investor confidence. The company's substantial presence outside the U.S. exposes it to foreign currency exchange rate risks. Despite the headwinds, we are impressed by the company's focus on China as the market offers significant commercial potential.”

A number of other equities research analysts also recently weighed in on the stock. MKM Partners reissued a buy rating and set a $40.00 price target on shares of Imax Corporation in a research note on Tuesday, April 25th. TheStreet downgraded shares of Imax Corporation from a b- rating to a c rating in a research note on Wednesday, May 17th. Roth Capital set a $37.00 price target on shares of Imax Corporation and gave the stock a buy rating in a research note on Thursday, April 20th. Wedbush lowered their target price on shares of Imax Corporation from $41.50 to $39.00 and set an outperform rating for the company in a research note on Friday, April 21st. Finally, Canaccord Genuity reaffirmed a buy rating and issued a $39.00 target price on shares of Imax Corporation in a research note on Monday, April 10th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $34.82.

Shares of Imax Corporation (NYSE:IMAX) remained flat at $20.45 during mid-day trading on Tuesday. The company had a trading volume of 748,978 shares. Imax Corporation has a one year low of $19.33 and a one year high of $35.30. The stock has a 50 day moving average price of $22.47 and a 200-day moving average price of $28.82. The firm has a market cap of $1.32 billion, a PE ratio of 138.18 and a beta of 0.90.

Imax Corporation (NYSE:IMAX) last posted its quarterly earnings results on Wednesday, July 26th. The company reported $0.15 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.02) by $0.17. The business had revenue of $87.76 million during the quarter, compared to the consensus estimate of $89.26 million. Imax Corporation had a net margin of 2.81% and a return on equity of 2.39%. Imax Corporation’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.18 earnings per share. On average, analysts expect that Imax Corporation will post $0.63 EPS for the current fiscal year.

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Imax Corporation declared that its Board of Directors has authorized a stock buyback plan on Monday, June 12th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 12.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

In other news, Director Eric A. Demirian sold 2,670 shares of the stock in a transaction dated Thursday, June 15th. The shares were sold at an average price of $25.10, for a total value of $67,017.00. Following the transaction, the director now directly owns 17,945 shares of the company’s stock, valued at $450,419.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 18.90% of the stock is owned by corporate insiders.

Large investors have recently bought and sold shares of the stock. Victory Capital Management Inc. increased its stake in Imax Corporation by 4.0% in the first quarter. Victory Capital Management Inc. now owns 3,163,030 shares of the company’s stock worth $107,543,000 after buying an additional 120,995 shares during the last quarter. BlackRock Inc. increased its stake in Imax Corporation by 54,861.2% in the first quarter. BlackRock Inc. now owns 2,607,357 shares of the company’s stock worth $88,651,000 after buying an additional 2,602,613 shares during the last quarter. Primecap Management Co. CA increased its stake in Imax Corporation by 6.2% in the first quarter. Primecap Management Co. CA now owns 1,904,530 shares of the company’s stock worth $64,754,000 after buying an additional 111,817 shares during the last quarter. Norges Bank bought a new stake in Imax Corporation during the fourth quarter worth $36,139,000. Finally, Bank of New York Mellon Corp increased its stake in Imax Corporation by 20.3% in the second quarter. Bank of New York Mellon Corp now owns 1,134,761 shares of the company’s stock valued at $24,965,000 after buying an additional 191,140 shares in the last quarter. Institutional investors own 89.54% of the company’s stock.

About Imax Corporation

IMAX Corporation is an entertainment technology company. The Company operates through seven segments: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production, and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment.

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