Insider Selling: IMAX (NYSE:IMAX) CEO Sells $5,323,000.00 in Stock

IMAX Corporation (NYSE:IMAX) CEO Richard Gelfond sold 100,000 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $53.23, for a total transaction of $5,323,000.00. Following the completion of the transaction, the chief executive officer owned 665,002 shares of the company’s stock, valued at approximately $35,398,056.46. This trade represents a 13.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

IMAX Trading Down 1.6%

NYSE:IMAX traded down $0.84 during trading hours on Thursday, hitting $52.87. 1,272,142 shares of the company were exchanged, compared to its average volume of 1,201,651. The company has a fifty day simple moving average of $44.22 and a 200 day simple moving average of $39.93. IMAX Corporation has a one year low of $25.56 and a one year high of $54.50. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of 73.43, a price-to-earnings-growth ratio of 1.67 and a beta of 0.38.

IMAX (NYSE:IMAX) last released its quarterly earnings results on Thursday, July 23rd. The company reported $0.43 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $102.84 million during the quarter, compared to analyst estimates of $96.09 million. During the same quarter last year, the business earned $0.26 EPS. The company’s revenue was up 12.2% compared to the same quarter last year. Equities research analysts predict that IMAX Corporation will post 1.44 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently issued reports on IMAX. Wedbush increased their price objective on shares of IMAX from $46.00 to $54.00 and gave the stock an “outperform” rating in a research report on Friday, July 24th. Benchmark reaffirmed a “buy” rating on shares of IMAX in a research note on Monday, June 22nd. Weiss Ratings upgraded IMAX from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. JPMorgan Chase & Co. upped their target price on IMAX from $47.00 to $50.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Finally, B. Riley Financial upped their price objective on shares of IMAX from $48.00 to $52.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Ten investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, IMAX currently has an average rating of “Moderate Buy” and an average price target of $51.55.

Trending Headlines about IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: “The Odyssey” is a major success for IMAX. The film has surpassed $1.29 billion globally and is being described as IMAX’s biggest release ever. Nearly 20,000 fans attended IMAX screenings at Odeon, while BFI IMAX reportedly named it the venue’s all-time box-office leader. The performance supports strong premium-format demand and IMAX’s revenue outlook. The Odyssey passes $1.29 billion and becomes IMAX’s biggest release ever
• Positive Sentiment: Demand for “Dune: Part Three” is exceptionally strong. Early 70mm IMAX showings are nearly sold out, presales reportedly overwhelmed booking websites, and scarce tickets are being resold at steep prices. This points to robust upcoming attendance, pricing power and continued interest in IMAX’s large-format experience. Early IMAX 70mm Dune showings nearly sell out
• Positive Sentiment: Analyst support remains constructive. Rosenblatt Securities reaffirmed its “buy” rating and set a $60 price target, implying additional upside from the cited market level. Rosenblatt Securities rating
• Neutral Sentiment: Some 70mm venues experienced projector or mechanical issues during “The Odyssey,” highlighting the limited availability and operational complexity of legacy film projection, although these reports appear localized. San Antonio’s 70mm IMAX projector
• Negative Sentiment: The immediate pressure appears more valuation- and momentum-related than fundamental: IMAX trades near its yearly high after a substantial advance, while its high earnings multiple leaves less room for disappointment. Ticket scarcity and scalping also create publicity risks if consumers cannot access screenings.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Orbis Allan Gray Ltd grew its holdings in IMAX by 31.7% during the second quarter. Orbis Allan Gray Ltd now owns 5,113,033 shares of the company’s stock worth $142,960,000 after buying an additional 1,230,267 shares in the last quarter. BlackRock Inc. purchased a new position in IMAX during the 2nd quarter worth $115,881,000. Westfield Capital Management Co. LP boosted its holdings in IMAX by 44.6% during the 4th quarter. Westfield Capital Management Co. LP now owns 2,346,486 shares of the company’s stock worth $86,726,000 after acquiring an additional 723,861 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of IMAX by 1.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,237,230 shares of the company’s stock worth $47,026,000 after acquiring an additional 23,401 shares in the last quarter. Finally, Nantahala Capital Management LLC grew its stake in shares of IMAX by 24.9% in the 2nd quarter. Nantahala Capital Management LLC now owns 1,133,993 shares of the company’s stock worth $31,706,000 after acquiring an additional 225,742 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.