Zacks Investment Research downgraded shares of Imax Corp. (NYSE:IMAX) from a hold rating to a sell rating in a report issued on Tuesday morning.

According to Zacks, “IMAX  has had a disappointing run at the box office over the past few months. The below-par box-office performance of movies like Alice Through the Looking Glass and Teenage Mutant Ninja Turtles: Out of the Shadows have hurt the company. However, the company's focus on the Chinese movie market is highly encouraging. The deal inked with Wanda Cinema Line in Aug 2016 will not only reinforce its Chinese presence but also generate huge revenues for IMAX. Conversely, due to its expanding international presence, the company is considerably exposed to foreign exchange-related risks . Apart from foreign exchange risks, the company's profits may also suffer due to stiff competition.”

Analyst Recommendations for Imax Corp. (NYSE:IMAX)

Other equities analysts have also recently issued reports about the stock. B. Riley reissued a buy rating and issued a $40.00 price objective on shares of Imax Corp. in a research report on Sunday, June 12th. Wedbush reissued an outperform rating and issued a $40.00 price objective on shares of Imax Corp. in a research report on Tuesday, July 12th. MKM Partners reissued a buy rating and issued a $40.00 price objective on shares of Imax Corp. in a research report on Tuesday, May 24th. Credit Suisse Group AG reissued a buy rating on shares of Imax Corp. in a research report on Tuesday, May 24th. Finally, Benchmark Co. reissued a buy rating on shares of Imax Corp. in a research report on Wednesday, June 22nd. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company’s stock. Imax Corp. has a consensus rating of Buy and an average target price of $40.56.

Imax Corp. (NYSE:IMAX) opened at 29.38 on Tuesday. Imax Corp. has a 12-month low of $25.52 and a 12-month high of $40.36. The company’s 50 day moving average price is $30.41 and its 200-day moving average price is $31.05. The stock has a market cap of $1.97 billion, a price-to-earnings ratio of 42.40 and a beta of 1.62.

Imax Corp. (NYSE:IMAX) last posted its quarterly earnings data on Wednesday, July 20th. The company reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. The company earned $91.70 million during the quarter, compared to analysts’ expectations of $91.30 million. Imax Corp. had a net margin of 12.47% and a return on equity of 7.66%. The firm’s revenue for the quarter was down 14.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.40 EPS. On average, analysts forecast that Imax Corp. will post $0.89 EPS for the current year.

In other Imax Corp. news, CEO Richard L. Gelfond sold 7,741 shares of the firm’s stock in a transaction that occurred on Friday, September 2nd. The shares were sold at an average price of $30.83, for a total value of $238,655.03. Following the sale, the chief executive officer now owns 102,470 shares in the company, valued at $3,159,150.10. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.80% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Advisor Group Inc. bought a new position in Imax Corp. during the second quarter valued at about $121,000. BlackRock Inc. boosted its position in Imax Corp. by 130.7% in the first quarter. BlackRock Inc. now owns 3,977 shares of the company’s stock valued at $123,000 after buying an additional 2,253 shares during the period. Ladenburg Thalmann Financial Services Inc. boosted its position in Imax Corp. by 273.6% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 6,621 shares of the company’s stock valued at $206,000 after buying an additional 4,849 shares during the period. Mackenzie Financial Corp bought a new position in Imax Corp. during the second quarter valued at about $218,000. Finally, Seven Eight Capital LLC boosted its position in Imax Corp. by 8.3% in the first quarter. Seven Eight Capital LLC now owns 7,800 shares of the company’s stock valued at $243,000 after buying an additional 600 shares during the period. Institutional investors and hedge funds own 79.77% of the company’s stock.

Imax Corp. Company Profile

IMAX Corporation is an entertainment technology company. The Company operates through seven segments: the IMAX systems, the theater system maintenance, the joint revenue sharing arrangements, film production and IMAX DMR, film distribution, film post-production and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment.

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