Wall Street Zen Downgrades IMAX (NYSE:IMAX) to Buy

IMAX (NYSE:IMAX) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report issued on Saturday.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. lifted their target price on IMAX from $31.00 to $32.00 and gave the stock a “neutral” rating in a report on Friday, October 24th. Weiss Ratings reissued a “buy (b)” rating on shares of IMAX in a report on Monday, December 8th. Rosenblatt Securities increased their price objective on IMAX from $42.00 to $47.00 and gave the company a “buy” rating in a research note on Monday, December 8th. Benchmark upped their price target on IMAX from $40.00 to $42.00 and gave the company a “buy” rating in a research report on Monday, December 8th. Finally, B. Riley reissued a “buy” rating on shares of IMAX in a research report on Monday, December 8th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, IMAX currently has a consensus rating of “Moderate Buy” and an average target price of $39.30.

IMAX Price Performance

IMAX stock opened at $38.13 on Friday. The company’s 50-day moving average is $34.33 and its 200 day moving average is $30.50. IMAX has a 1-year low of $20.48 and a 1-year high of $38.89. The firm has a market capitalization of $2.05 billion, a P/E ratio of 53.70, a price-to-earnings-growth ratio of 2.33 and a beta of 0.41.

IMAX (NYSE:IMAX) last announced its quarterly earnings results on Thursday, October 23rd. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.16. The firm had revenue of $106.65 million during the quarter, compared to analyst estimates of $102.88 million. IMAX had a return on equity of 9.91% and a net margin of 10.47%.IMAX’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.35 earnings per share. Research analysts anticipate that IMAX will post 0.91 earnings per share for the current fiscal year.

Insider Transactions at IMAX

In related news, VP Robert D. Lister sold 50,143 shares of IMAX stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $34.67, for a total transaction of $1,738,457.81. Following the completion of the sale, the vice president owned 161,421 shares in the company, valued at approximately $5,596,466.07. This trade represents a 23.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Giovanni M. Dolci sold 6,188 shares of the stock in a transaction on Monday, November 10th. The stock was sold at an average price of $34.25, for a total value of $211,939.00. Following the transaction, the executive vice president directly owned 33,000 shares in the company, valued at approximately $1,130,250. This represents a 15.79% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 24.08% of the company’s stock.

Institutional Trading of IMAX

Large investors have recently added to or reduced their stakes in the stock. Westfield Capital Management Co. LP bought a new stake in IMAX in the third quarter valued at about $53,141,000. Orbis Allan Gray Ltd increased its holdings in shares of IMAX by 31.7% during the second quarter. Orbis Allan Gray Ltd now owns 5,113,033 shares of the company’s stock valued at $142,960,000 after purchasing an additional 1,230,267 shares during the period. Divisadero Street Capital Management LP acquired a new stake in shares of IMAX in the 3rd quarter worth approximately $20,975,000. Jane Street Group LLC boosted its stake in IMAX by 2,496.9% during the 1st quarter. Jane Street Group LLC now owns 573,919 shares of the company’s stock valued at $15,123,000 after purchasing an additional 551,819 shares in the last quarter. Finally, Balyasny Asset Management L.P. acquired a new position in IMAX during the second quarter worth about $12,568,000. 93.51% of the stock is currently owned by institutional investors and hedge funds.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies.