IMAX (NYSE:IMAX) Stock Price Down 5.8% – Here’s Why

IMAX Corporation (NYSE:IMAX)’s share price traded down 5.8% during mid-day trading on Monday . The company traded as low as $37.69 and last traded at $37.5570. Approximately 539,507 shares were traded during trading, a decline of 52% from the average session volume of 1,115,587 shares. The stock had previously closed at $39.88.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Wedbush restated an “outperform” rating and issued a $46.00 price target on shares of IMAX in a research report on Thursday, April 23rd. Wall Street Zen lowered shares of IMAX from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Seaport Research Partners reiterated a “buy” rating and issued a $50.00 target price on shares of IMAX in a research note on Wednesday, June 24th. Weiss Ratings downgraded IMAX from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, June 23rd. Finally, Keefe, Bruyette & Woods restated a “market perform” rating and set a $60.00 price target on shares of IMAX in a research report on Friday, May 22nd. Nine research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, IMAX presently has a consensus rating of “Moderate Buy” and a consensus target price of $48.00.

IMAX Stock Performance

The stock has a market cap of $2.13 billion, a price-to-earnings ratio of 59.41, a PEG ratio of 1.32 and a beta of 0.37. The firm’s 50-day simple moving average is $38.97 and its two-hundred day simple moving average is $37.84.

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

Insider Transactions at IMAX

In other IMAX news, CEO Richard L. Gelfond sold 135,046 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $37.82, for a total value of $5,107,439.72. Following the transaction, the chief executive officer directly owned 765,002 shares in the company, valued at approximately $28,932,375.64. This trade represents a 15.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 340,040 shares of company stock worth $12,715,513. 20.55% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On IMAX

A number of institutional investors and hedge funds have recently made changes to their positions in IMAX. CIBC Private Wealth Group LLC bought a new position in IMAX in the third quarter valued at about $27,000. Quarry LP boosted its stake in shares of IMAX by 166.8% in the 4th quarter. Quarry LP now owns 875 shares of the company’s stock valued at $32,000 after purchasing an additional 547 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of IMAX by 2,310.4% during 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 last quarter. Torren Management LLC acquired a new position in IMAX in the fourth quarter valued at approximately $40,000. Finally, Aster Capital Management DIFC Ltd boosted its stake in IMAX by 863.0% in the fourth 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 last quarter. 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.