In a recent financial move, Mark Welton, President of IMAX (NYSE:IMAX) Theatres, executed a notable transaction involving shares of IMAX Corp (NYSE:IMAX), which currently maintains a strong financial health rating according to InvestingPro analysis. On December 9, Welton sold 39,432 common shares at an average price of $25.51 per share, amounting to a total value of approximately $1,005,740. This sale followed a previous acquisition of the same number of shares, which were converted from stock options at a price of $20.85 per share. The transaction comes as IMAX shares trade near their 52-week high of $26.84, having delivered an impressive 69% return over the past six months.
These transactions were influenced by the impending expiration of stock options issued in 2018, set to expire on March 7, 2025, and the company's fourth-quarter trading blackout period beginning on December 18, 2024. After these transactions, Welton holds 111,315 common shares, with additional outstanding options and restricted share units. The company maintains a healthy liquidity position with a current ratio of 3.31, indicating strong ability to meet short-term obligations. For deeper insights into IMAX's financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, IMAX Corporation has been making significant strides in the film industry. The company recently reported strong financial performance in its Q3 2024 earnings call, with adjusted EBITDA reaching $39 million, a 42% margin, and earnings per share (EPS) standing at $0.35, surpassing forecasts by over 50%. The quarter's revenue was reported at $91.5 million, driven by major titles and content solutions.
In addition, IMAX has been experiencing growth in system installations, expecting to reach between 130-150 by year-end. Looking ahead, the company anticipates a global box office exceeding $1.2 billion in 2025, supported by a strong film slate.
On the analyst front, B.Riley recently adjusted its outlook on IMAX, increasing the shares target from $30.00 to $33.00 while maintaining a Buy rating on the stock. The raised price target reflects the firm's confidence in IMAX's growth trajectory and its potential for increased profitability and market share gains in the coming years. These recent developments indicate a positive direction for IMAX Corporation.
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