Immersion (NASDAQ:IMMR) Issues Earnings Results

Key Points

• Immersion beat earnings expectations for the quarter, reporting EPS of $0.12 versus the $0.05 consensus estimate. Revenue also came in ahead of forecasts at $270 million compared with $230 million expected.
• The company declared a quarterly dividend of $0.075 per share, payable July 31, which works out to an annualized yield of about 4.6%. However, the payout ratio is extremely high at 1,500%.
• Analyst sentiment remains mixed, with recent downgrades offset by one upgrade; MarketBeat shows a consensus rating of Hold and a consensus price target of $13.50.

Immersion (NASDAQ:IMMR - Get Free Report) released its earnings results on Friday. The software maker reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.07, FiscalAI reports. The company had revenue of $270.00 million for the quarter, compared to analyst estimates of $230.00 million. Immersion had a negative net margin of 0.97% and a negative return on equity of 4.54%.

Immersion Price Performance

Immersion stock opened at $6.52 on Friday. The company has a current ratio of 1.83, a quick ratio of 1.16 and a debt-to-equity ratio of 0.25. The company has a fifty day simple moving average of $6.56 and a 200-day simple moving average of $6.34. The stock has a market cap of $215.81 million, a P/E ratio of 326.00 and a beta of 1.02. Immersion has a 12-month low of $5.25 and a 12-month high of $7.51.

Immersion Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Monday, July 20th will be given a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a dividend yield of 4.6%. The ex-dividend date of this dividend is Monday, July 20th. Immersion's payout ratio is 1,500.00%.

Analysts Set New Price Targets

Several analysts have recently issued reports on IMMR shares. Weiss Ratings cut Immersion from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 8th. Zacks Research raised Immersion to a "hold" rating in a research note on Friday, May 8th. Finally, Wall Street Zen downgraded Immersion from a "hold" rating to a "sell" rating in a report on Monday, July 20th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $13.50.

Institutional Trading of Immersion

A number of institutional investors have recently bought and sold shares of IMMR. Millennium Management LLC increased its holdings in shares of Immersion by 121.5% in the 3rd quarter. Millennium Management LLC now owns 536,733 shares of the software maker's stock valued at $3,940,000 after acquiring an additional 294,393 shares during the last quarter. Numerai GP LLC increased its stake in Immersion by 810.5% in the third quarter. Numerai GP LLC now owns 189,059 shares of the software maker's stock valued at $1,388,000 after purchasing an additional 168,294 shares during the last quarter. Jump Financial LLC raised its holdings in Immersion by 439.8% during the second quarter. Jump Financial LLC now owns 126,637 shares of the software maker's stock worth $998,000 after purchasing an additional 103,176 shares in the last quarter. Squarepoint Ops LLC boosted its holdings in shares of Immersion by 49.9% in the 3rd 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 in the last quarter. Finally, BNP Paribas Financial Markets grew its position in shares of Immersion by 139.0% in the 3rd 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 last quarter. 60.57% of the stock is owned by hedge funds and other institutional investors.

Immersion Company Profile

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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