IMAX (NYSE:IMAX) CEO Richard Gelfond Sells 205,504 Shares of Stock

IMAX Corporation (NYSE:IMAX) CEO Richard Gelfond sold 205,504 shares of IMAX stock in a transaction 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 transaction, the chief executive officer directly owned 765,002 shares of the company’s stock, valued at $40,751,656.54. This represents a 21.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 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. The stock has a market capitalization of $2.90 billion, a P/E ratio of 73.43, a price-to-earnings-growth ratio of 1.77 and a beta of 0.38. The firm’s fifty day simple moving average is $44.44 and its two-hundred day simple moving average is $40.06. IMAX Corporation has a 12 month low of $25.56 and a 12 month high of $54.50.

IMAX (NYSE:IMAX) last issued its quarterly earnings results 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. The firm had revenue of $102.84 million during the quarter, compared to the consensus estimate of $96.09 million. IMAX had a return on equity of 15.47% and a net margin of 9.84%.The business’s revenue was up 12.2% compared to the same quarter last year. During the same period last year, the business posted $0.26 EPS. As a group, research analysts predict that IMAX Corporation will post 1.44 EPS for the current fiscal year.

Key Headlines Impacting IMAX

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

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IMAX. CIBC Private Wealth Group LLC bought a new position in IMAX in the third quarter worth approximately $27,000. Quarry LP grew its stake in IMAX by 166.8% in the fourth quarter. Quarry LP now owns 875 shares of the company’s stock valued at $32,000 after acquiring an additional 547 shares during the period. Torren Management LLC bought a new stake in shares of IMAX during the fourth quarter valued at approximately $40,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of 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 valued at $38,000 after acquiring an additional 1,109 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd raised its position in shares of IMAX by 863.0% during the fourth 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. 93.51% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

IMAX has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lifted their target price on IMAX from $47.00 to $50.00 and gave the stock an “overweight” rating in a report on Friday, July 24th. Wedbush increased their price target on IMAX from $46.00 to $54.00 and gave the stock 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 report on Saturday, July 25th. Seaport Research Partners reiterated a “buy” rating and issued a $50.00 price objective on shares of IMAX in a research note on Wednesday, June 24th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and issued a $42.00 price objective on shares of IMAX in a research note on Thursday, July 23rd. Ten analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price 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.