IMAX (NYSE:IMAX) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of IMAX (NYSE:IMAX) from a buy rating to a hold rating in a report published on Saturday morning.

Several other research analysts also recently commented on the company. HC Wainwright reiterated a “buy” rating on shares of IMAX in a research note on Friday, July 24th. JPMorgan Chase & Co. increased their price target on IMAX from $47.00 to $50.00 and gave the company an “overweight” rating in a research note on Friday, July 24th. Barrington Research raised their price target on IMAX from $46.00 to $50.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Roth Capital lifted their price objective on shares of IMAX from $48.00 to $50.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Finally, Benchmark reiterated a “buy” rating on shares of IMAX in a report on Monday, June 22nd. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $52.36.

IMAX Trading Up 3.8%

NYSE:IMAX opened at $54.77 on Friday. The stock has a market capitalization of $3.00 billion, a PE ratio of 76.06, a P/E/G ratio of 1.74 and a beta of 0.38. IMAX has a 1-year low of $27.00 and a 1-year high of $55.57. The firm has a fifty day simple moving average of $44.90 and a 200 day simple moving average of $40.32.

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, topping the consensus estimate of $0.30 by $0.13. The firm had revenue of $102.84 million for the quarter, compared to analyst estimates of $96.09 million. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.26 earnings per share. On average, equities analysts predict that IMAX will post 1.44 earnings per share for the current fiscal year.

Insider Buying and Selling at IMAX

In related news, CEO Richard L. Gelfond sold 205,504 shares of IMAX stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $53.27, for a total transaction of $10,947,198.08. Following the completion of the sale, the chief executive officer directly owned 765,002 shares of the company’s stock, valued at approximately $40,751,656.54. This trade represents a 21.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 456,757 shares of company stock worth $23,984,101 in the last 90 days. 20.55% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On IMAX

A number of hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of IMAX during the second quarter worth approximately $115,881,000. California State Teachers Retirement System boosted its stake in shares of IMAX by 3,785.1% in the second quarter. California State Teachers Retirement System now owns 2,104,728 shares of the company’s stock valued at $83,894,000 after buying an additional 2,050,554 shares during the period. Orbis Allan Gray Ltd boosted its stake in shares of IMAX by 31.7% in the second quarter. Orbis Allan Gray Ltd now owns 5,113,033 shares of the company’s stock valued at $142,960,000 after buying an additional 1,230,267 shares during the period. Westfield Capital Management Co. LP grew its position in IMAX by 44.6% during the fourth 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 in the last quarter. Finally, Nantahala Capital Management LLC acquired a new stake in IMAX during the second quarter worth approximately $26,228,239,000. Institutional investors and hedge funds own 93.51% of the company’s stock.

Key IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: “The Odyssey” is driving exceptional demand. IMAX screenings of the film have reportedly sold out at venues such as Tennessee Aquarium IMAX, while its worldwide popularity helped produce the company’s strongest month on record. Strong box-office performance can increase IMAX’s theater and film-related revenue. IMAX Shares Soar To Record High as The Odyssey Fuels Best Month Ever
• Positive Sentiment: Investors are focusing on long-term installation growth. Rising installations of IMAX theater systems could expand the company’s recurring technology and maintenance revenue and support earnings growth as audiences continue to favor immersive cinema. Why IMAX Stock Climbed to a New All-Time High Today
• Positive Sentiment: Upcoming premium-format releases may sustain theater demand. Availability of Dune: Part Three in 70mm IMAX across the U.K. highlights a pipeline of major films that can attract audiences and generate additional box-office participation. UK Cinemas Showing Dune: Part Three in 70mm IMAX
• Neutral Sentiment: Coverage explaining why relatively few films are shot in IMAX underscores the format’s premium positioning, but does not provide a direct new financial catalyst. Why Are More Movies Not Shot in IMAX?
• Negative Sentiment: An IMAX location in New York City is expected to close later this year. The loss of a prominent AMC venue could modestly reduce local screen capacity and illustrates the company’s exposure to theater closures, although the broader impact appears limited. New York City IMAX Theater Closure
• Negative Sentiment: IMAX’s chief technology officer sold 15,000 shares for approximately $786,000, reducing his direct stake by 26%. The transaction may create a modest sentiment overhang, though insider sales do not necessarily indicate a change in business fundamentals. IMAX CTO Share Sale

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.