Immersion (NASDAQ:IMMR) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Immersion shares rose above their 200-day moving average on Friday, trading as high as $6.83 and last changing hands at $6.75 versus a 200-day average of $6.35.
• Analyst sentiment remains cautious, with recent downgrades from Weiss Ratings and Wall Street Zen helping offset a Zacks upgrade; MarketBeat shows a consensus Hold rating and a $13.50 average price target.
• The company reported weak fundamentals and maintains a hefty dividend yield, posting a quarterly EPS loss and forecasting negative full-year earnings, while announcing a $0.075 quarterly dividend that implies a 4.4% annual yield.

Immersion Corporation (NASDAQ:IMMR - Get Free Report) shares crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $6.35 and traded as high as $6.83. Immersion shares last traded at $6.75, with a volume of 369,607 shares.

Analyst Ratings Changes

Several analysts have recently commented on IMMR shares. Weiss Ratings lowered shares of Immersion from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 8th. Wall Street Zen downgraded Immersion from a "hold" rating to a "sell" rating in a research report on Sunday, June 28th. Finally, Zacks Research raised Immersion to a "hold" rating in a research note on Friday, May 8th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Immersion has a consensus rating of "Hold" and an average price target of $13.50.

Immersion Stock Performance

The company has a market capitalization of $223.43 million, a PE ratio of 337.50 and a beta of 1.02. The stock's fifty day simple moving average is $6.52 and its 200-day simple moving average is $6.35. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.16 and a current ratio of 1.83.

Immersion (NASDAQ:IMMR - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The software maker reported ($0.31) EPS for the quarter. The firm had revenue of $518.49 million for the quarter. Immersion had a negative return on equity of 4.54% and a negative net margin of 0.97%. As a group, equities analysts predict that Immersion Corporation will post -0.04 earnings per share for the current year.

Immersion Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Monday, July 20th will be paid a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 4.4%. The ex-dividend date of this dividend is Monday, July 20th. Immersion's payout ratio is presently 1,500.00%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Kanen Wealth Management LLC lifted its position in Immersion by 51.0% during the first quarter. Kanen Wealth Management LLC now owns 709,000 shares of the software maker's stock worth $3,871,000 after buying an additional 239,318 shares during the period. Millennium Management LLC boosted its position in Immersion by 121.5% during the 3rd quarter. Millennium Management LLC now owns 536,733 shares of the software maker's stock worth $3,940,000 after purchasing an additional 294,393 shares during the period. Qube Research & Technologies Ltd increased its holdings in Immersion by 20.5% in the 2nd quarter. Qube Research & Technologies Ltd now owns 501,563 shares of the software maker's stock valued at $3,952,000 after purchasing an additional 85,196 shares in the last quarter. Squarepoint Ops LLC raised its position in Immersion by 5.6% in the fourth quarter. Squarepoint Ops LLC now owns 299,224 shares of the software maker's stock valued at $2,035,000 after purchasing an additional 15,993 shares during the period. Finally, Bank of New York Mellon Corp raised its position in Immersion by 5.9% in the first quarter. Bank of New York Mellon Corp now owns 296,024 shares of the software maker's stock valued at $1,616,000 after purchasing an additional 16,571 shares during the period. Hedge funds and other institutional investors own 60.57% of the company's stock.

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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