IMAX (NYSE:IMAX) Sets New 12-Month High – Should You Buy?

IMAX Corporation (NYSE:IMAX) shares hit a new 52-week high during trading on Wednesday . The stock traded as high as $54.28 and last traded at $53.1970, with a volume of 312698 shares trading hands. The stock had previously closed at $50.55.

IMAX News Summary

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and raised or maintained a $60 price target, implying further upside from recent levels. The call reinforces the bullish analyst consensus surrounding IMAX. Rosenblatt Securities reiterates Buy rating
• Positive Sentiment: The Odyssey reportedly surpassed $1.29 billion globally, making it IMAX’s biggest release ever. The result highlights the company’s ability to benefit from blockbuster films through premium ticket sales and related revenue. The Odyssey becomes IMAX’s biggest release
• Positive Sentiment: Demand for Dune: Part Three appears strong, with early 70mm IMAX screenings nearly selling out, booking websites experiencing heavy traffic, and tickets reportedly being resold at large markups. This supports expectations for robust attendance and premium-format demand. Dune IMAX screenings nearly sell out
• Neutral Sentiment: CEO Richard Gelfond sold a combined 456,757 shares for approximately $24 million from August 18–20. The transactions were conducted under a pre-arranged Rule 10b5-1 plan, which reduces concern that they signal deteriorating business conditions. He still owns 665,002 shares. SEC insider trading filing
• Negative Sentiment: The concentrated CEO selling could pressure sentiment and add near-term share supply, particularly with IMAX trading close to its annual high and at a high price-to-earnings ratio.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on IMAX. B. Riley Financial upped their price target on IMAX from $48.00 to $52.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Rosenblatt Securities restated a “buy” rating and set a $60.00 price objective on shares of IMAX in a report on Wednesday. Keefe, Bruyette & Woods reiterated a “market perform” rating and issued a $60.00 target price on shares of IMAX in a report on Friday, May 22nd. Seaport Research Partners restated a “buy” rating and set a $50.00 price target on shares of IMAX in a research note on Wednesday, June 24th. Finally, The Goldman Sachs Group restated a “neutral” rating and set a $42.00 price target on shares of IMAX in a research note on Thursday, July 23rd. Ten investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $51.55.

IMAX Price Performance

The company has a 50 day simple moving average of $44.44 and a 200-day simple moving average of $40.06. The stock has a market capitalization of $2.90 billion, a P/E ratio of 73.43, a price-to-earnings-growth ratio of 1.77 and a beta of 0.38.

IMAX (NYSE:IMAX) last issued its earnings results on Thursday, July 23rd. The company reported $0.43 EPS 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 the consensus estimate of $96.09 million. During the same quarter last year, the company earned $0.26 EPS. The firm’s revenue was up 12.2% compared to the same quarter last year. As a group, equities analysts forecast that IMAX Corporation will post 1.44 earnings per share for the current fiscal year.

Insider Activity at IMAX

In other news, CEO Richard L. Gelfond sold 205,504 shares of IMAX stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $53.27, for a total value of $10,947,198.08. Following the completion of the transaction, the chief executive officer owned 765,002 shares in the company, valued at approximately $40,751,656.54. The trade was a 21.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 456,757 shares of company stock valued at $23,984,101. 20.55% of the stock is currently owned by insiders.

Hedge Funds Weigh In On IMAX

A number of large investors have recently made changes to their positions in the company. CIBC Private Wealth Group LLC bought a new stake in IMAX in the third quarter worth about $27,000. Quarry LP grew its stake in shares of IMAX by 166.8% during the fourth quarter. Quarry LP now owns 875 shares of the company’s stock valued at $32,000 after buying an additional 547 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of IMAX by 2,310.4% in the third quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company’s stock worth $38,000 after buying an additional 1,109 shares during the period. Torren Management LLC bought a new stake in shares of IMAX during the 4th quarter worth approximately $40,000. Finally, Aster Capital Management DIFC Ltd boosted its holdings in IMAX by 863.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company’s stock valued at $62,000 after acquiring an additional 1,493 shares during the period. 93.51% of the stock is 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.