IMAX (NYSE:IMAX) Downgraded by Wells Fargo & Company to Hold

IMAX (NYSE:IMAX) was downgraded by stock analysts at Wells Fargo & Company from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday,Zacks.com reports.

Several other research analysts have also commented on IMAX. Wedbush restated an “outperform” rating and set a $46.00 price target on shares of IMAX in a research report on Thursday, April 23rd. JPMorgan Chase & Co. cut their price objective on IMAX from $48.00 to $47.00 and set an “overweight” rating on the stock in a report on Friday, May 1st. The Goldman Sachs Group set a $40.00 target price on IMAX in a research note on Thursday, July 9th. Wall Street Zen cut IMAX from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $60.00 target price on shares of IMAX in a research report on Friday, May 22nd. Eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, IMAX currently has a consensus rating of “Moderate Buy” and an average price target of $47.30.

IMAX Stock Performance

Shares of IMAX stock opened at $38.96 on Thursday. The firm has a market cap of $2.14 billion, a P/E ratio of 59.94, a P/E/G ratio of 1.44 and a beta of 0.37. The firm’s 50 day moving average price is $39.24 and its 200-day moving average price is $37.90. IMAX has a one year low of $24.20 and a one year high of $45.52.

IMAX (NYSE:IMAX) last posted its earnings results on Thursday, April 30th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.02. The firm had revenue of $81.38 million during the quarter, compared to the consensus estimate of $79.82 million. IMAX had a net margin of 9.08% and a return on equity of 13.61%. The firm’s revenue for the quarter was down 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.13 EPS. As a group, research analysts predict that IMAX will post 1.3 EPS for the current fiscal year.

Insider Buying and Selling

In other IMAX news, CEO Richard L. Gelfond sold 8,943 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $37.33, for a total value of $333,842.19. Following the completion of the transaction, the chief executive officer owned 765,002 shares of the company’s stock, valued at $28,557,524.66. This trade represents a 1.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.55% of the stock is owned by corporate insiders.

Institutional Trading of IMAX

Large investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC acquired a new stake in shares of IMAX in the third quarter valued at $27,000. Quarry LP grew its stake in IMAX by 166.8% during 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. Torren Management LLC acquired a new position in IMAX during the 4th quarter worth $40,000. Caitong International Asset Management Co. Ltd grew its stake in IMAX by 2,310.4% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company’s stock worth $38,000 after purchasing an additional 1,109 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd increased its holdings in IMAX by 863.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company’s stock worth $62,000 after purchasing an additional 1,493 shares during the period. Hedge funds and other institutional investors own 93.51% of the company’s stock.

Key Stories Impacting IMAX

Here are the key news stories impacting IMAX this week:

• Positive Sentiment: Multiple articles highlight intense demand for The Odyssey in IMAX 70mm, with fans traveling long distances, paying premiums, and seeking out scarce showtimes. That kind of buzz supports IMAX’s premium positioning and could translate into stronger box office-related revenue and exhibitor interest. Article Title
• Positive Sentiment: Coverage also notes that IMAX’s limited number of 70mm-capable screens makes the format feel exclusive, which can help sustain premium ticket pricing and strengthen the company’s brand with major filmmakers like Christopher Nolan. Article Title
• Positive Sentiment: IMAX and Goer Dynamics announced a partnership to develop the world’s first IMAX-branded in-vehicle entertainment system, expanding IMAX’s brand into a new premium entertainment category outside traditional theaters. Article Title
• Neutral Sentiment: Several previews say IMAX is expected to report earnings next week, and analysts are watching for growth, but there is no new financial update yet to move the stock on its own. Article Title
• Negative Sentiment: IMAX has said it is not practical to build many more 70mm systems quickly, underscoring supply constraints that may limit how much near-term demand from The Odyssey can be captured. Article Title

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.