IMAX (NYSE:IMAX) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of IMAX (NYSE:IMAX) from a buy rating to a hold rating in a report issued on Saturday.

A number of other research analysts have also recently issued reports on IMAX. Wedbush lifted their price objective on shares of IMAX from $46.00 to $54.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Seaport Research Partners restated a “buy” rating and set a $50.00 target price on shares of IMAX in a research note on Wednesday, June 24th. Benchmark reaffirmed a “buy” rating on shares of IMAX in a report on Monday, June 22nd. Rosenblatt Securities reiterated a “buy” rating and issued a $60.00 price target on shares of IMAX in a research note on Wednesday. Finally, Keefe, Bruyette & Woods reissued a “market perform” rating and set a $60.00 price target on shares of IMAX in a report on Friday, May 22nd. Ten investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, IMAX has an average rating of “Moderate Buy” and a consensus price target of $51.55.

IMAX Stock Up 0.4%

Shares of IMAX stock opened at $52.93 on Friday. IMAX has a 12-month low of $26.17 and a 12-month high of $54.50. The company has a market capitalization of $2.90 billion, a price-to-earnings ratio of 73.51, a PEG ratio of 1.74 and a beta of 0.38. The firm’s 50-day moving average price is $44.65 and its two-hundred day moving average price is $40.15.

IMAX (NYSE:IMAX) last issued its earnings results on Thursday, July 23rd. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.30 by $0.13. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The company had revenue of $102.84 million during the quarter, compared to analysts’ expectations of $96.09 million. During the same period in the previous year, the company earned $0.26 EPS. The business’s revenue for the quarter was up 12.2% compared to the same quarter last year. On average, sell-side analysts expect that IMAX will post 1.44 earnings per share for the current year.

Insider Transactions at IMAX

In related news, CEO Richard L. Gelfond sold 205,504 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $53.27, for a total transaction of $10,947,198.08. Following the completion of the transaction, the chief executive officer directly owned 765,002 shares in the company, valued at $40,751,656.54. This represents a 21.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 456,757 shares of company stock worth $23,984,101. 20.55% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IMAX. CIBC Private Wealth Group LLC bought a new position in shares of IMAX in the 3rd quarter valued at $27,000. Quarry LP grew its position in IMAX by 166.8% during the 4th quarter. Quarry LP now owns 875 shares of the company’s stock worth $32,000 after acquiring an additional 547 shares during the last quarter. Torren Management LLC bought a new stake in IMAX during the 4th quarter worth $40,000. Caitong International Asset Management Co. Ltd increased its holdings in IMAX by 2,310.4% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company’s stock worth $38,000 after purchasing an additional 1,109 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd increased its holdings in IMAX by 863.0% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company’s stock worth $62,000 after purchasing 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

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.