IMAX (NYSE:IMAX) Shares Gap Up After Better-Than-Expected Earnings

Shares of IMAX Corporation (NYSE:IMAX) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $39.30, but opened at $41.75. IMAX shares last traded at $44.7410, with a volume of 1,021,196 shares trading hands.

The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.15. IMAX had a net margin of 9.08% and a return on equity of 13.61%. The business had revenue of $102.84 million for the quarter, compared to analyst estimates of $94.69 million. During the same quarter in the previous year, the firm posted $0.26 earnings per share. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis.

Analyst Ratings Changes

Several equities research analysts have commented on IMAX shares. The Goldman Sachs Group set a $40.00 price target on shares of IMAX in a research report on Thursday, July 9th. JPMorgan Chase & Co. decreased their price objective on IMAX from $48.00 to $47.00 and set an “overweight” rating for the company in a report on Friday, May 1st. Barrington Research lifted their target price on IMAX from $42.00 to $46.00 and gave the company an “outperform” rating in a research report on Friday, May 1st. Seaport Research Partners reiterated a “buy” rating and set a $50.00 target price on shares of IMAX in a report on Wednesday, June 24th. Finally, Roth Capital reissued a “buy” rating on shares of IMAX in a research report on Thursday. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, IMAX has an average rating of “Moderate Buy” and an average price target of $47.30.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IMAX. CIBC Private Wealth Group LLC acquired a new stake in IMAX in the 3rd quarter valued at about $27,000. Quarry LP grew its holdings in IMAX by 166.8% during the fourth quarter. Quarry LP now owns 875 shares of the company’s stock worth $32,000 after purchasing an additional 547 shares during the period. Torren Management LLC acquired a new position in IMAX during the fourth quarter worth approximately $40,000. Caitong International Asset Management Co. Ltd increased its position in IMAX by 2,310.4% during the third quarter. Caitong International Asset Management Co. Ltd now owns 1,157 shares of the company’s stock worth $38,000 after buying an additional 1,109 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd raised its stake in IMAX by 863.0% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,666 shares of the company’s stock valued at $62,000 after buying an additional 1,493 shares during the period. 93.51% of the stock is currently owned by institutional investors and hedge funds.

IMAX Stock Up 12.5%

The stock has a market cap of $2.43 billion, a P/E ratio of 68.01, a price-to-earnings-growth ratio of 1.39 and a beta of 0.37. The firm has a 50 day simple moving average of $39.60 and a 200-day simple moving average of $37.94.

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.