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What: Shares of IMAX (NYSE: IMAX)fell 11.6% in June, according to data provided by S&P Global Market Intelligence, after an analyst turned less bullish on the stock.
So what: Analysts at B. Riley & Co. cut their price target for IMAX stock from $45 to $40, but maintained a buy rating on the stock. Without any obvious megablockbusters on the horizon, the analysts think investors' expectations may be too high.
IMAX also announced that CFO Joseph Sparacio will be replaced by Patrick McClymont in a couple of months. Changing CFOs is common in public companies, but it can sometimes make investors a bit uneasy.
Now what: Shares may have been hit more by speculation than genuinely bad results, so I wouldn't change your investment thesis by this month alone. IMAX has been able to build out its theater network over the last few years and is now set up for blockbusters when they come. Most notable on the horizon is Avatar's sequels, which really put IMAX on the map in 2009 and should be a huge boost to results when they're released starting in 2018.
The article Why IMAX Corporation's Shares Dropped 12% in June originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Boston Beer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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