IMAX CEO Says Will Use ‘Blips In Valuation’ To Buy Back Stock — Retail Traders Stay Neutral

Imax Corp. (IMAX), which operates as an entertainment technology platform worldwide, reportedly seeks to benefit from any potential industry-wide sell-off in shares by repurchasing them at cheaper prices.

In an interview with Bloomberg, CFO Natasha Fernandes said, “A change in any political environment or something on the Hollywood side and you get an immediate dip in the stock price, we have approval on the share repurchase side that you can then just go ahead and make the investment.”

CEO Rich Gelfond offered more color on the buyback plans in the same interview. “When the market digresses in its view of what we’re going to accomplish versus what we feel, then we’re going to be aggressive,” he said, adding that “I think we’ll probably use it more in the short run if there are blips in valuation.”

What’s Retail’s Pulse On Imax?

The retail users of the Stocktwits deemed it fit to remain on the sidelines. The latest sentiment reading, constructed based on retail watchers of the stock, showed a ‘neutral’ mood, although marking an improvement from the ‘bearish’ sentiment seen the day before. The message volume on the stream was at ‘low’ levels.

IMAX Stock Outperforms, Analysts Upbeat

IMAX stock has advanced about 24% this year, outperforming the broader market, driven by strong demand for premium theater experiences and a lineup of Hollywood blockbusters, including Apple’s F1: The Movie, Paramount’s Mission: Impossible — Final Reckoning, and Warner Bros.’ Sinners, which have all leveraged the IMAX format. In comparison, rivals Dolby Labs (DLB), which offers Dolby Cinema, and Cinemark, which offers the XD screen, have lost 11.91% and 12.85%, respectively.

According to Koyfin, the average price target for Imax is $36.45, implying roughly 15% upside from the stock’s Wednesday close.

As recently as this week, Roth Capital upped the price target for IMAX stock to $40 from $36 and maintained a ‘Buy’ rating, according to a summary of the note on The Fly. Analysts at the firm said the company's strategic initiatives have helped drive record third-quarter global box office results and its second-highest quarterly gross ever. 

They also noted continued market share gains, with local language titles serving as a source of strength. IMAX network expansion is occurring at a faster-than-projected pace and is taking place for the most part in markets with above-average revenue per screen, they added.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Apple AI Talent Exodus Continues As Exec Overseeing ChatGPT-Like Search Feature Jumps Ship To Meta: Report

Share

·

Add us on