IMAX (NYSE:IMAX) Hits New 12-Month High – Still a Buy?

Shares of IMAX Corporation (NYSE:IMAX) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $48.74 and last traded at $48.5350, with a volume of 2165066 shares traded. The stock had previously closed at $47.29.

Trending Headlines about IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: “The Odyssey” demand is extending IMAX revenue opportunities. Multiple reports say Christopher Nolan’s film is selling out 70mm IMAX screenings weeks in advance, prompting theaters to add showtimes and extend the film’s run. That indicates strong pricing power, high screen utilization and continued audience interest in IMAX’s premium presentation. Forbes article on extended The Odyssey IMAX screenings
• Positive Sentiment: Broad theater-level momentum is being reported. IMAX venues in Kingsport and West Michigan are preparing for busy blockbuster weekends, while local coverage confirms extended runs for “The Odyssey.” These reports suggest the demand is widespread rather than limited to a single market. WOOD TV article on The Odyssey IMAX run
• Positive Sentiment: The film’s production is reinforcing IMAX brand value. Coverage highlighting that “The Odyssey” was created entirely in 70mm IMAX presents the format as an essential part of the theatrical experience, potentially encouraging future filmmaker partnerships and premium ticket demand. Mashable article on extended 70mm IMAX screenings
• Neutral Sentiment: Analyst-oriented coverage from Zacks identifies IMAX as a long-term momentum stock, consistent with its strong price performance and recent earnings beat. However, the stock’s elevated valuation means further gains may depend on sustained box-office strength and execution. Zacks IMAX momentum stock analysis

Analyst Ratings Changes

A number of brokerages have recently commented on IMAX. Benchmark reissued a “buy” rating on shares of IMAX in a report on Monday, June 22nd. Wedbush upped their price objective on shares of IMAX from $46.00 to $54.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $42.00 target price on shares of IMAX in a research report on Thursday, July 23rd. B. Riley Financial raised their target price on shares of IMAX from $48.00 to $52.00 and gave the company a “buy” rating in a research note on Monday, July 20th. Finally, Barrington Research raised their target price on shares of IMAX from $46.00 to $50.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Ten research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $50.36.

IMAX Price Performance

The stock has a market capitalization of $2.62 billion, a P/E ratio of 66.33, a PEG ratio of 1.57 and a beta of 0.37. The stock’s fifty day moving average is $41.22 and its two-hundred day moving average is $38.46.

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

Institutional Investors Weigh In On IMAX

Several hedge funds have recently modified their holdings of IMAX. Orbis Allan Gray Ltd boosted its position in shares of IMAX by 31.7% in the 2nd 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. Westfield Capital Management Co. LP raised 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 buying an additional 723,861 shares during the period. Dimensional Fund Advisors LP lifted its stake in IMAX by 1.9% during the first quarter. Dimensional Fund Advisors LP now owns 1,237,230 shares of the company’s stock valued at $47,026,000 after buying an additional 23,401 shares in the last quarter. Nantahala Capital Management LLC lifted its stake in IMAX by 24.9% during the second quarter. Nantahala Capital Management LLC now owns 1,133,993 shares of the company’s stock valued at $31,706,000 after buying an additional 225,742 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in shares of IMAX by 1.9% in the fourth quarter. Victory Capital Management Inc. now owns 1,104,071 shares of the company’s stock worth $40,806,000 after buying an additional 20,079 shares during the period. 93.51% of the stock is owned by hedge funds and other institutional investors.

IMAX Company Profile

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.