IMAX (NYSE:IMAX) Price Target Cut to $52.00 by Analysts at Wells Fargo & Company

IMAX (NYSE:IMAX) had its price objective lowered by equities research analysts at Wells Fargo & Company from $55.00 to $52.00 in a report released on Friday, Benzinga reports. The firm currently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target points to a potential upside of 9.31% from the company’s current price.

A number of other equities research analysts also recently commented on IMAX. HC Wainwright reaffirmed a “buy” rating on shares of IMAX in a research report on Friday, July 24th. The Goldman Sachs Group increased their target price on IMAX from $42.00 to $50.00 and gave the stock a “neutral” rating in a research report on Friday, September 4th. B. Riley Financial raised their price target on IMAX from $61.00 to $64.00 and gave the stock a “buy” rating in a research note on Thursday, October 8th. Roth Capital restated a “buy” rating and issued a $62.00 price target on shares of IMAX in a report on Friday, October 23rd. Finally, Morgan Stanley initiated coverage on IMAX in a report on Thursday, September 24th. They issued an “overweight” rating and a $63.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $57.92.

IMAX Price Performance

IMAX stock traded down $0.56 during midday trading on Friday, hitting $47.57. The stock had a trading volume of 165,925 shares, compared to its average volume of 1,138,908. The company’s 50-day moving average price is $52.20 and its 200 day moving average price is $43.15. The firm has a market cap of $2.61 billion, a PE ratio of 66.06, a price-to-earnings-growth ratio of 1.31 and a beta of 0.54. IMAX has a 12-month low of $32.71 and a 12-month high of $57.73.

IMAX (NYSE:IMAX) last issued its quarterly earnings results on Thursday, November 5th. The company reported $2.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $1.19. IMAX had a return on equity of 15.47% and a net margin of 9.84%. The company had revenue of $174.55 million for the quarter, compared to analyst estimates of $168.53 million. During the same quarter in the prior year, the company posted $0.47 EPS. The business’s revenue for the quarter was up 63.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that IMAX will post 1.88 EPS for the current year.

Insider Activity at IMAX

In other news, insider Kenneth Weissman sold 8,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $54.54, for a total transaction of $436,320.00. Following the completion of the sale, the insider directly owned 28,205 shares of the company’s stock, valued at $1,538,300.70. The trade was a 22.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Natasha Fernandes sold 20,000 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $54.63, for a total value of $1,092,600.00. Following the sale, the chief financial officer owned 35,596 shares of the company’s stock, valued at approximately $1,944,609.48. The trade was a 35.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 507,257 shares of company stock worth $26,673,571 in the last 90 days. Company insiders own 20.55% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Eurizon Capital SGR S.p.A. purchased a new stake in IMAX during the third quarter valued at about $29,000. Parallel Advisors LLC increased its stake in IMAX by 418.4% during the third quarter. Parallel Advisors LLC now owns 1,239 shares of the company’s stock worth $68,000 after acquiring an additional 1,000 shares during the last quarter. Sterling Capital Management LLC raised its holdings in shares of IMAX by 838.9% in the 3rd quarter. Sterling Capital Management LLC now owns 1,521 shares of the company’s stock worth $83,000 after purchasing an additional 1,359 shares during the period. Global Retirement Partners LLC purchased a new position in shares of IMAX in the 2nd quarter worth about $85,000. Finally, Nykredit A S purchased a new position in shares of IMAX in the 2nd quarter worth about $105,000. Institutional investors and hedge funds own 93.51% of the company’s stock.

Trending Headlines about IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Record results substantially beat expectations. IMAX reported $2.21 in quarterly EPS versus consensus near $1.02, while revenue reached $174.55 million, up 63.6% year over year and above forecasts. The company credited record box-office performance, led by The Odyssey. IMAX third-quarter results
• Positive Sentiment: More premium-screen demand may support results. The Odyssey is set to return to IMAX 70mm theaters in December, while the strong performance of the film helped drive the company’s quarterly box-office record. Variety article on IMAX’s record quarter
• Neutral Sentiment: Theatrical-release terms remain a point of debate. CEO Rich Gelfond questioned why some theater chains would not screen Netflix’s The Further Mis-Adventures of Cliff Booth during its planned two-week IMAX run. The dispute highlights potential friction over release windows, but the articles don’t quantify any financial impact. Deadline article on the Cliff Booth debate
• Negative Sentiment: Valuation and post-earnings trading may be weighing on the stock. The shares are lower despite the earnings beat and reports of an initial rally. With the supplied trailing P/E at 66.83, investors may be taking profits or reassessing how much growth is already priced in; this is a possible market explanation, not a negative catalyst identified in the articles. Yahoo Finance analysis of IMAX’s earnings beat

About IMAX

IMAX Corporation (NYSE: IMAX) is a global entertainment technology company that specializes in premium large-format cinema experiences. The company designs and supplies specialized theater systems that combine large screens, high-resolution projection, advanced sound, and immersive theater design to present feature films, documentaries, live events, and other content.

IMAX supports its theater partners with projection and sound equipment, theater design and installation services, and technology and maintenance support.