IMAX (NYSE:IMAX) Rating Lowered to “Hold” at Wall Street Zen

IMAX (NYSE:IMAX) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Several other equities analysts also recently issued reports on the company. Rosenblatt Securities reissued a “buy” rating and issued a $60.00 target price on shares of IMAX in a research report on Wednesday, August 19th. Barrington Research lifted their price target on IMAX from $46.00 to $50.00 and gave the stock an “outperform” rating in a research report on Friday, July 24th. Seaport Research Partners reaffirmed a “buy” rating and set a $50.00 price target on shares of IMAX in a research report on Wednesday, June 24th. JPMorgan Chase & Co. boosted their price target on IMAX from $47.00 to $50.00 and gave the company an “overweight” rating in a research note on Friday, July 24th. Finally, Wells Fargo & Company increased their price objective on IMAX from $41.00 to $45.00 and gave the company an “equal weight” rating in a report on Friday, July 24th. Ten investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, IMAX presently has an average rating of “Moderate Buy” and a consensus target price of $51.55.

IMAX Trading Up 0.4%

NYSE:IMAX opened at $52.93 on Friday. The company has a market cap of $2.90 billion, a PE ratio of 73.51, a P/E/G ratio of 1.74 and a beta of 0.38. IMAX has a twelve month low of $26.17 and a twelve month high of $54.50. The company’s 50 day moving average is $44.65 and its two-hundred day moving average is $40.18.

IMAX (NYSE:IMAX) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $0.13. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The business had revenue of $102.84 million during the quarter, compared to analysts’ expectations of $96.09 million. During the same quarter last year, the company posted $0.26 earnings per share. The business’s quarterly revenue was up 12.2% on a year-over-year basis. As a group, analysts expect that IMAX will post 1.44 EPS for the current fiscal year.

Insider Buying and Selling

In other IMAX news, CEO Richard L. Gelfond sold 100,000 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $53.23, for a total value of $5,323,000.00. Following the sale, the chief executive officer owned 665,002 shares in the company, valued at approximately $35,398,056.46. This represents a 13.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 456,757 shares of company stock valued at $23,984,101. Corporate insiders own 20.55% of the company’s stock.

Hedge Funds Weigh In On IMAX

Several large investors have recently made changes to their positions in IMAX. CIBC Private Wealth Group LLC purchased a new stake in IMAX during the third quarter worth $27,000. Quarry LP raised its position in shares of IMAX by 166.8% in the fourth quarter. Quarry LP now owns 875 shares of the company’s stock worth $32,000 after acquiring an additional 547 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in shares of IMAX by 2,310.4% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company’s stock worth $38,000 after acquiring an additional 1,109 shares in the last quarter. Torren Management LLC purchased a new stake in shares of IMAX during the 4th quarter worth about $40,000. Finally, Aster Capital Management DIFC Ltd boosted its stake in shares of IMAX by 863.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company’s stock worth $62,000 after acquiring an additional 1,493 shares in the last quarter. 93.51% of the stock is currently owned by institutional investors and hedge funds.

More IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Rosenblatt Securities reiterated a Buy rating and established a $60 price target, signaling continued confidence in IMAX’s growth prospects and potential upside. Rosenblatt reiterates Buy rating
• Positive Sentiment: The Odyssey has reportedly surpassed $1.29 billion globally and become IMAX’s biggest release ever. The result highlights strong audience demand for IMAX presentations and could support additional box-office-related revenue and future studio partnerships. The Odyssey becomes IMAX’s biggest release
• Positive Sentiment: Demand for Dune: Part Three appears strong, with early 70mm IMAX screenings nearly selling out and reports of heavy ticket demand. This points to potentially robust attendance and premium-ticket economics for upcoming releases. Dune IMAX 70mm screenings nearly sell out
• Neutral Sentiment: IMAX amended Chief Legal Officer and Senior Executive Vice President Robert D. Lister’s employment agreement on August 19. The update may provide management continuity, but no major financial or strategic change was disclosed. IMAX extends chief legal officer agreement
• Negative Sentiment: CEO Richard Gelfond sold a combined 456,757 shares from August 18–20 for approximately $24 million, reducing his direct ownership by a sizable amount. The transactions were made under a pre-arranged Rule 10b5-1 plan, which lessens concerns about a sudden loss of confidence, but the selling could still pressure sentiment while IMAX trades at an elevated valuation. SEC insider trading filing

IMAX Company Profile

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.