Is IMAX Corporation (NYSE: IMAX) Back In The Buying Zone?


    Dimensional Fund Advisors LP recently announced the acquisition of new stake in IMAX Corporation (NYSE:IMAX). The institutional investor has increased its shareholding in the Communication Services company by 8.49% to 2.37 million shares with purchase of 0.19 million shares. This fresh investment now brings its stake to 4.02% valued currently at $26.73 million. In addition, Massachusetts Financial Services.. raised its holdings by 0.32 million to 2.36 million shares. And Renaissance Technologies LLC has lifted its position by 31.93% or 0.43 million shares – to 1.77 million shares.

    With over 1.01 million IMAX Corporation (IMAX) shares trading Monday and a closing price of $15.37 on the day, the dollar volume was approximately $15.58 million. The shares have shown a positive weekly performance of 6.81% and its price on 08/31/20 lost nearly -2.10%. Currently, there are 58.81M common shares owned by the public and among those 49.04M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for IMAX have a consensus price objective of $15.63. The analysts have set the share’s price value over the next 12 months at a high of $20.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the IMAX Corporation stock is 2.00 for the next 12 months. The average price target is 4.24% above its last price level and an upside to the estimated low will see the stock lose -28.08% over that period. But an upside of 23.15% will see the stock hit the forecast high price target while mean target price for the stock is $15.00.

    Insiders at the company have transacted a total of 41 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 29 of these insider trades were purchases, accounting for 209,125 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 84,009 shares.

    The top 3 mutual fund holders in IMAX Corporation are MFS New Discovery Value Fund, PRIMECAP Odyssey Aggressive Growt, and Templeton Emerging Markets Invest. MFS New Discovery Value Fund owns 1.82 million shares of the company’s stock, all valued at over $20.6 million. Templeton Emerging Markets Invest now owns shares totaling to 1.82% of the shares outstanding.

    Shares of IMAX Corporation (NYSE: IMAX) opened at $15.68, down -$0.02 from a prior closing price of $15.70. However, the script later closed the day at $15.37, down -2.10%. The company’s stock has a 5-day price change of 6.81% and 17.87% over the past three months. IMAX shares are trading -24.77% year to date (YTD), with the 12-month market performance down to -26.53% lower. It has a 12-month low price of $6.01 and touched a high of $22.88 over the same period. Currently, 1.01 million shares have been traded, compared to an average intraday trading volume of 1.07 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 18.08%, 24.76%, and 4.14% respectively.

    Institutional ownership of IMAX Corporation (NYSE: IMAX) shares accounts for 75.10% of the company’s 58.81M shares outstanding. Mutual fund holders own 36.34%, while other institutional holders and individual stakeholders account for 41.11% and 31.78% respectively.

    It has a market capitalization of $890.85M and a beta (3y monthly) value of 1.62. The earnings-per-share (ttm) stands at -$0.82. The company has a debt-to-equity ratio at 0.68. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.60% over the week and 4.90% over the month.

    Analysts forecast that IMAX Corporation (IMAX) will achieve an EPS of -$0.31 for the current quarter, -$0.08 for the next quarter and $0.56 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.48 while analysts give the company a high EPS estimate of -$0.16. Comparatively, EPS for the current quarter was $0.21 a year ago. Earnings per share for the fiscal year are expected to increase by 110.90%, and 142.70% over the next financial year. EPS should grow at an annualized rate of 36.60% over the next five years, compared to 6.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate IMAX Corporation (IMAX) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 3 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the IMAX, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on July 15, 2020, with the firm’s price target at $14. The Benchmark Company coverage for the IMAX Corporation (IMAX) stock in a research note released on April 28, 2020 offered a Buy rating with a price target of $14. Wedbush was of a view on April 24, 2020 that the stock is Neutral, while Barrington Research gave the stock Outperform rating on March 24, 2020, issuing a price target of $20- $15. The Benchmark Company on their part issued Hold rating on March 17, 2020.


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