IMAX (NYSE:IMAX) Shares Gap Up – What’s Next?

Shares of IMAX Corporation (NYSE:IMAX) gapped up prior to trading on Friday . The stock had previously closed at $33.88, but opened at $38.52. IMAX shares last traded at $39.1840, with a volume of 543,699 shares trading hands.

Key Headlines Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: IMAX is reportedly exploring a sale and has approached potential buyers, raising takeover speculation and boosting investor interest. IMAX Is Exploring a Sale
• Positive Sentiment: Sources said IMAX has already held preliminary talks through intermediaries, suggesting the process is further along than a rumor, even though no formal bids have been made yet. IMAX has held ‘preliminary talks’ with potential buyers, source says
• Neutral Sentiment: Reports say the sale process is still early and may not result in a transaction, so the rally is being driven more by speculation than by a confirmed deal. IMAX is exploring sale, WSJ reports
• Neutral Sentiment: Additional coverage from Deadline and other outlets reinforced the takeover narrative, helping keep attention on the stock. Imax Exploring Sale, Has Held Preliminary Talks with Potential Suitors

Analysts Set New Price Targets

Several equities research analysts recently issued reports on IMAX shares. Rosenblatt Securities reiterated a “buy” rating and issued a $47.00 price objective on shares of IMAX in a report on Monday, April 20th. Barrington Research boosted their price objective on IMAX from $42.00 to $46.00 and gave the company an “outperform” rating in a report on Friday, May 1st. Wedbush reiterated an “outperform” rating and issued a $46.00 price objective on shares of IMAX in a report on Thursday, April 23rd. Benchmark boosted their price objective on IMAX from $44.00 to $60.00 and gave the company a “buy” rating in a report on Friday. Finally, Wall Street Zen cut IMAX from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $46.67.

IMAX Stock Performance

The company has a 50-day moving average price of $36.80 and a 200-day moving average price of $36.69. The firm has a market capitalization of $2.14 billion, a price-to-earnings ratio of 59.76, a PEG ratio of 1.21 and a beta of 0.37.

IMAX (NYSE:IMAX) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.02. The business had revenue of $81.38 million during the quarter, compared to analysts’ expectations of $79.82 million. IMAX had a return on equity of 13.61% and a net margin of 9.08%.The business’s quarterly revenue was down 6.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.13 EPS. On average, research analysts expect that IMAX Corporation will post 1.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In other IMAX news, CEO Richard L. Gelfond sold 8,943 shares of the business’s stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $37.33, for a total value of $333,842.19. Following the completion of the sale, the chief executive officer owned 765,002 shares in the company, valued at approximately $28,557,524.66. The trade was a 1.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kevin Douglas sold 330,200 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $37.82, for a total value of $12,488,164.00. Following the completion of the sale, the insider owned 3,657,450 shares of the company’s stock, valued at approximately $138,324,759. This represents a 8.28% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,054,284 shares of company stock valued at $40,062,532. 20.55% of the stock is owned by company insiders.

Institutional Investors Weigh In On IMAX

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC purchased a new position in shares of IMAX during the 3rd quarter worth approximately $27,000. Quarry LP raised its stake in shares of IMAX by 166.8% during the 4th quarter. Quarry LP now owns 875 shares of the company’s stock worth $32,000 after buying an additional 547 shares in the last quarter. Jones Financial Companies Lllp raised its stake in shares of IMAX by 43.8% during the 3rd quarter. Jones Financial Companies Lllp now owns 1,041 shares of the company’s stock worth $34,000 after buying an additional 317 shares in the last quarter. Clearstead Advisors LLC purchased a new position in shares of IMAX during the 3rd quarter worth approximately $35,000. Finally, Caitong International Asset Management Co. Ltd raised 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 buying an additional 1,109 shares in the last quarter. Hedge funds and other institutional investors own 93.51% of the company’s stock.

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.