Immersion (NASDAQ:IMMR) Issues Earnings Results, Beats Estimates By $0.44 EPS

Key Points

• Immersion beat quarterly earnings expectations: The company reported EPS of $0.50, surpassing the $0.06 consensus estimate by $0.44. Revenue totaled $294.4 million, far above the $3.43 million analyst estimate.
• The company maintains a high-yield dividend: Immersion paid a quarterly dividend of $0.075 per share, equivalent to $0.30 annually and a 4.1% yield. However, its payout ratio is elevated at 214.29%.
• Analysts remain cautious on the stock: Immersion has a consensus “Hold” rating and a $13.50 price target, while insiders have been net sellers and institutional investors own 60.57% of shares.

Immersion (NASDAQ:IMMR - Get Free Report) issued its quarterly earnings results on Monday. The software maker reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.44, FiscalAI reports. Immersion had a net margin of 0.26% and a return on equity of 0.80%. The firm had revenue of $294.40 million for the quarter, compared to analyst estimates of $3.43 million.

Immersion Stock Performance

NASDAQ:IMMR opened at $7.40 on Monday. The stock has a 50 day simple moving average of $7.28 and a 200 day simple moving average of $6.61. The stock has a market cap of $245.61 million, a P/E ratio of 52.86 and a beta of 1.02. Immersion has a 1-year low of $5.25 and a 1-year high of $8.05. The company has a current ratio of 2.30, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13.

Immersion Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Monday, July 20th were issued a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Monday, July 20th. Immersion's dividend payout ratio (DPR) is presently 214.29%.

Insiders Place Their Bets

In other news, major shareholder Toro 18 Holdings Llc sold 200,000 shares of Immersion stock in a transaction on Monday, August 10th. The stock was sold at an average price of $5.22, for a total transaction of $1,044,000.00. Following the completion of the sale, the insider owned 1,344,647 shares of the company's stock, valued at approximately $7,019,057.34. This trade represents a 12.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last quarter, insiders sold 442,815 shares of company stock worth $2,201,304. 10.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Immersion

Hedge funds have recently bought and sold shares of the business. Two Sigma Investments LP grew its position in shares of Immersion by 63.8% during the 3rd quarter. Two Sigma Investments LP now owns 117,739 shares of the software maker's stock worth $864,000 after purchasing an additional 45,881 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Immersion by 139.0% in the third quarter. BNP Paribas Financial Markets now owns 159,481 shares of the software maker's stock valued at $1,171,000 after buying an additional 92,749 shares during the period. Squarepoint Ops LLC boosted its stake in shares of Immersion by 49.9% in the third quarter. Squarepoint Ops LLC now owns 283,231 shares of the software maker's stock valued at $2,079,000 after buying an additional 94,243 shares during the period. Ameriprise Financial Inc. grew its position in Immersion by 14.2% during the second quarter. Ameriprise Financial Inc. now owns 217,313 shares of the software maker's stock worth $1,712,000 after buying an additional 27,025 shares in the last quarter. Finally, Numerai GP LLC grew its position in Immersion by 810.5% during the third quarter. Numerai GP LLC now owns 189,059 shares of the software maker's stock worth $1,388,000 after buying an additional 168,294 shares in the last quarter. 60.57% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

IMMR has been the subject of several analyst reports. BWS Financial restated a "buy" rating and issued a $13.50 price objective on shares of Immersion in a report on Tuesday, July 28th. Wall Street Zen raised Immersion from a "sell" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings downgraded Immersion from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $13.50.

About Immersion

Immersion Corporation is a technology company specializing in the development and licensing of haptic feedback solutions. The company's proprietary software and hardware technologies enable devices to simulate the sense of touch, enhancing user experiences across a range of electronic products. Immersion's core offerings include touch-feedback algorithms, software development kits, and reference designs that can be integrated into smartphones, gaming controllers, wearable devices, automotive infotainment systems, medical simulators and virtual or augmented reality platforms.

Since its founding in 1993, Immersion has built an extensive intellectual property portfolio of more than 950 issued patents worldwide.

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