Immersion (NASDAQ:IMMR) Share Price Breaks Above 200-Day Moving Average - Should You Sell?

Key Points

• Immersion shares broke above their 200-day moving average, reaching $7.32 and last trading at $7.23, compared with a 200-day average of $6.72.
• Analysts maintain a consensus “Hold” rating, with one Buy and two Hold ratings, but the consensus price target of $13.50 implies substantial upside from the reported trading price.
• The company beat quarterly earnings expectations with EPS of $0.17 versus $0.06 expected and announced a quarterly dividend of $0.075 per share, equivalent to a 4.1% annual yield; however, insiders sold shares during the quarter.

Immersion Corporation (NASDAQ:IMMR - Get Free Report) passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $6.72 and traded as high as $7.32. Immersion shares last traded at $7.23, with a volume of 219,716 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. BWS Financial reaffirmed a "buy" rating and set a $13.50 price objective on shares of Immersion in a report on Tuesday, July 28th. Weiss Ratings upgraded shares of Immersion from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, September 16th. Finally, Wall Street Zen raised shares of Immersion from a "sell" rating to a "hold" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $13.50.

Immersion Trading Down 0.4%

The company has a market capitalization of $240.11 million, a P/E ratio of 21.26 and a beta of 1.02. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.14 and a quick ratio of 1.16. The firm has a fifty day moving average price of $7.45 and a 200-day moving average price of $6.72.

Immersion (NASDAQ:IMMR - Get Free Report) last issued its quarterly earnings results on Monday, September 14th. The software maker reported $0.17 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.11. Immersion had a return on equity of 1.83% and a net margin of 0.60%.The company had revenue of $294.40 million during the quarter, compared to the consensus estimate of $3.43 million. On average, equities research analysts anticipate that Immersion Corporation will post 0.26 earnings per share for the current year.

Immersion Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a dividend of $0.0750 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Friday, October 16th. Immersion's payout ratio is presently 88.24%.

Insider Buying and Selling at Immersion

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

Institutional Trading of Immersion

Several hedge funds have recently added to or reduced their stakes in the stock. First Trust Advisors LP boosted its stake in Immersion by 2.1% in the first quarter. First Trust Advisors LP now owns 87,899 shares of the software maker's stock valued at $480,000 after acquiring an additional 1,819 shares during the last quarter. Caitlin John LLC purchased a new stake in shares of Immersion during the 2nd quarter worth approximately $27,000. Strs Ohio purchased a new stake in shares of Immersion during the 1st quarter worth approximately $27,000. Persistent Asset Partners Ltd purchased a new stake in shares of Immersion during the 2nd quarter worth approximately $41,000. Finally, Optiver Holding B.V. raised its holdings in shares of Immersion by 1,681.2% in the 1st quarter. Optiver Holding B.V. now owns 7,855 shares of the software maker's stock worth $43,000 after purchasing an additional 7,414 shares during the period. Institutional investors own 60.57% of the company's stock.

Immersion Company Profile

Immersion Corporation NASDAQ: IMMR develops and licenses haptic technologies that enable electronic devices to communicate through tactile sensations such as vibration, pressure, and motion. Its intellectual property and software are designed to help manufacturers create more responsive and immersive user experiences.

The company's haptic solutions are used across a range of markets, including smartphones and other mobile devices, automotive systems, gaming controllers, personal computers, consumer electronics, and medical equipment.

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