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

Shares of IMAX Corporation (NYSE:IMAX) hit a new 52-week high during trading on Tuesday . The company traded as high as $55.57 and last traded at $54.7650, with a volume of 1382846 shares traded. The stock had previously closed at $52.74.

Key Stories Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: IMAX continues to benefit from strong audience interest in premium screenings, including reported ticket demand in New York and upcoming high-profile releases such as Akira, Dune: Part Three and the limited-run Queen Budapest concert film. These events could support box-office revenue and reinforce the value of IMAX’s format. IMAX ticket demand article Queen Budapest IMAX article
• Positive Sentiment: A new IMAX auditorium is planned for Mann Theatres’ Plymouth location, adding to the company’s theater network and potentially increasing future installation, maintenance and box-office participation revenue. Mann Theatres Plymouth IMAX article
• Positive Sentiment: Management will present at upcoming Bank of America and Goldman Sachs investor conferences in September. The appearances may provide additional detail on theater installations, film demand and growth plans, keeping institutional attention on the stock. IMAX investor conference announcement
• Neutral Sentiment: IMAX recently reached a new one-year high after a rally tied to enthusiasm for its immersive format and expectations that additional theater installations will drive earnings growth. However, the elevated valuation—approximately 73 times earnings—could make the stock sensitive to profit-taking or disappointing guidance. IMAX one-year high article
• Negative Sentiment: Chief Financial Officer Natasha Fernandes sold 20,000 shares for approximately $1.09 million, reducing her direct ownership by nearly 36%. Another insider, Kenneth Ian Weissman, sold 8,000 shares for about $436,000 and reduced his holdings by roughly 22%. Although insider sales do not necessarily indicate weakening fundamentals, the transactions can weigh on sentiment after the stock’s strong run. CFO SEC filing Insider SEC filing
• Negative Sentiment: The planned closure of AMC Kips Bay 15 in New York will remove an IMAX screen, highlighting the risk that theater shutdowns can offset new auditorium openings and reduce the company’s available exhibition footprint. AMC Kips Bay IMAX closure article

Analyst Upgrades and Downgrades

A number of analysts have weighed in on IMAX shares. HC Wainwright restated a “buy” rating on shares of IMAX in a research note on Friday, July 24th. Seaport Research Partners reaffirmed a “buy” rating and set a $50.00 price objective on shares of IMAX in a research report on Wednesday, June 24th. Roth Capital increased their price objective on IMAX from $48.00 to $50.00 and gave the company a “buy” rating in a report on Friday, July 24th. Wells Fargo & Company raised their target price on IMAX from $41.00 to $45.00 and gave the stock an “equal weight” rating in a research report on Friday, July 24th. Finally, The Goldman Sachs Group restated a “neutral” rating and set a $42.00 target price on shares of IMAX in a research note on Thursday, July 23rd. Ten equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $52.36.

IMAX Stock Performance

The stock’s 50-day moving average is $45.27 and its 200 day moving average is $40.56. The stock has a market capitalization of $2.89 billion, a PE ratio of 73.18, a P/E/G ratio of 1.73 and a beta of 0.38.

IMAX (NYSE:IMAX) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share for the quarter, beating 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 firm 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 earnings per share. IMAX’s quarterly revenue was up 12.2% compared to the same quarter last year. Analysts expect that IMAX Corporation will post 1.49 earnings per share for the current year.

Insider Transactions at IMAX

In related news, CFO Natasha Fernandes sold 20,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $54.63, for a total value of $1,092,600.00. Following the completion of the sale, the chief financial officer directly owned 35,596 shares of the company’s stock, valued at $1,944,609.48. This represents a 35.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Richard L. Gelfond sold 100,000 shares of the firm’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 transaction, the chief executive officer owned 665,002 shares in the company, valued at $35,398,056.46. This represents a 13.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 484,757 shares of company stock worth $25,513,021. Corporate insiders own 20.55% of the company’s stock.

Institutional Investors Weigh In On IMAX

Several large investors have recently modified their holdings of the company. California State Teachers Retirement System grew its position in shares of IMAX by 3,785.1% during the second quarter. California State Teachers Retirement System now owns 2,104,728 shares of the company’s stock worth $83,894,000 after acquiring an additional 2,050,554 shares during the last quarter. Nykredit A S purchased a new stake in IMAX in the 2nd quarter valued at $105,000. Triumph Capital Management raised its position in IMAX by 3.0% in the 2nd quarter. Triumph Capital Management now owns 17,295 shares of the company’s stock valued at $689,000 after purchasing an additional 504 shares during the last quarter. Susquehanna Fundamental Investments LLC acquired a new stake in IMAX during the 2nd quarter worth $380,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in IMAX by 5,002.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 140,838 shares of the company’s stock worth $5,614,000 after purchasing an additional 138,078 shares during the period. 93.51% of the stock is owned by institutional investors and hedge funds.

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.