IMAX (NYSE:IMAX) CEO Richard Gelfond Sells 100,000 Shares

IMAX Corporation (NYSE:IMAX) CEO Richard Gelfond sold 100,000 shares of the stock in a transaction dated 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 sale, the chief executive officer directly owned 665,002 shares in the company, valued at approximately $35,398,056.46. The trade was a 13.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

IMAX Trading Down 1.6%

Shares of IMAX opened at $52.87 on Friday. IMAX Corporation has a 12-month low of $25.56 and a 12-month high of $54.50. The stock has a market cap of $2.90 billion, a P/E ratio of 73.43, a PEG ratio of 1.77 and a beta of 0.38. The company has a 50-day moving average of $44.44 and a two-hundred day moving average of $40.06.

IMAX (NYSE:IMAX) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.30 by $0.13. IMAX had a net margin of 9.84% and a return on equity of 15.47%. The business had revenue of $102.84 million during the quarter, compared to analysts’ expectations of $96.09 million. During the same period last year, the company posted $0.26 EPS. The company’s revenue was up 12.2% on a year-over-year basis. As a group, analysts forecast that IMAX Corporation will post 1.44 EPS for the current fiscal year.

Key IMAX News

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and set a $60 price target, implying further upside from recent trading levels. Benzinga analyst rating report
• Positive Sentiment: The Odyssey has surpassed $1.29 billion globally and is being described as IMAX’s biggest release ever, reinforcing the value of the company’s premium large-format screens and supporting potential box-office and licensing revenue. The Odyssey becomes IMAX’s biggest release
• Positive Sentiment: Demand for Dune: Part Three appears exceptionally strong, with IMAX 70mm screenings selling out or nearly selling out, booking websites reportedly facing heavy traffic, and tickets being resold at substantial markups. This suggests strong near-term attendance and premium-format demand. Early Dune IMAX 70mm showings nearly sell out
• Neutral Sentiment: CEO Richard L. Gelfond sold a combined 456,757 IMAX shares from August 18–20 for approximately $24.0 million. All three transactions were executed under a pre-arranged Rule 10b5-1 plan, reducing the likelihood that the sales reflect a newly negative view of the business, although they may weigh on sentiment after the stock’s strong rally. He continues to own 665,002 shares. SEC insider trading filing
• Negative Sentiment: The concentrated CEO selling is the clearest near-term bearish catalyst, particularly with IMAX trading near its 12-month high and at an elevated earnings multiple. Investors may interpret the sales as profit-taking and a source of additional supply even though they were preplanned.

Institutional Trading of IMAX

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd lifted its holdings in IMAX by 28.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,489 shares of the company’s stock valued at $55,000 after acquiring an additional 332 shares during the last quarter. Triumph Capital Management boosted its position in shares of IMAX by 3.0% during the 2nd quarter. Triumph Capital Management now owns 17,295 shares of the company’s stock valued at $689,000 after purchasing an additional 504 shares in the last quarter. ProShare Advisors LLC grew its stake in shares of IMAX by 6.8% in the 4th quarter. ProShare Advisors LLC now owns 8,000 shares of the company’s stock worth $296,000 after purchasing an additional 511 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of IMAX by 0.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 108,781 shares of the company’s stock worth $4,021,000 after purchasing an additional 546 shares during the last quarter. Finally, Quarry LP raised its holdings in shares of IMAX by 166.8% in the 4th quarter. Quarry LP now owns 875 shares of the company’s stock worth $32,000 after purchasing an additional 547 shares in the last quarter. Hedge funds and other institutional investors own 93.51% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on IMAX shares. JPMorgan Chase & Co. upped their price objective on IMAX from $47.00 to $50.00 and gave the company an “overweight” rating in a research report on Friday, July 24th. B. Riley Financial boosted 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. Wedbush upped their target price on shares of IMAX from $46.00 to $54.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Wall Street Zen raised shares of IMAX from a “hold” rating to a “buy” rating in a research note on Saturday, July 25th. Finally, Seaport Research Partners reiterated a “buy” rating and set a $50.00 price target on shares of IMAX in a report on Wednesday, June 24th. Ten investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $51.55.

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.