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

Key Points

• Immersion shares rose above their 200-day moving average, trading as high as $7.16 versus the $6.81 average, and last changed hands at $7.14.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from three analysts, despite a $13.50 average price target and one “Buy” recommendation.
• Immersion reported quarterly EPS of $0.17, exceeding the $0.06 consensus estimate, and declared a $0.075 quarterly dividend, equivalent to a 4.2% annualized yield.

Immersion Corporation (NASDAQ:IMMR - Get Free Report) shares crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $6.81 and traded as high as $7.16. Immersion shares last traded at $7.14, with a volume of 482,461 shares traded.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on IMMR shares. BWS Financial restated a "buy" rating and set a $13.50 target price on shares of Immersion in a report on Tuesday, July 28th. Wall Street Zen raised shares of Immersion from a "sell" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings raised shares of Immersion from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 16th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $13.50.

Immersion Trading Up 0.7%

The company has a quick ratio of 1.16, a current ratio of 2.14 and a debt-to-equity ratio of 0.22. The firm has a market cap of $237.09 million, a price-to-earnings ratio of 21.00 and a beta of 1.01. The business has a 50 day moving average price of $7.43 and a 200-day moving average price of $6.81.

Immersion (NASDAQ:IMMR - Get Free Report) last announced its earnings results on Monday, September 14th. The software maker reported $0.17 EPS for the quarter, beating the consensus estimate of $0.06 by $0.11. The business had revenue of $294.40 million for the quarter, compared to the consensus estimate of $3.43 million. Immersion had a return on equity of 1.83% and a net margin of 0.60%. As a group, research analysts expect that Immersion Corporation will post 0.26 EPS for the current fiscal year.

Immersion Dividend Announcement

The company also recently disclosed 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. The ex-dividend date is Friday, October 16th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.2%. Immersion's dividend payout ratio (DPR) is currently 88.24%.

Insider Buying and Selling

In other news, CEO Eric Singer bought 41,000 shares of Immersion stock in a transaction dated Wednesday, October 7th. The shares were acquired at an average cost of $7.14 per share, with a total value of $292,740.00. Following the completion of the transaction, the chief executive officer owned 2,230,664 shares in the company, valued at approximately $15,926,940.96. This trade represents a 1.87% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Toro 18 Holdings Llc sold 105,541 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $4.63, for a total transaction of $488,654.83. Following the transaction, the insider directly owned 1,101,832 shares in the company, valued at approximately $5,101,482.16. The trade was a 8.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 442,815 shares of company stock worth $2,201,304 in the last quarter. Insiders own 10.60% of the company's stock.

Institutional Investors Weigh In On Immersion

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its position in Immersion by 134.4% in the 3rd quarter. GAMMA Investing LLC now owns 3,834 shares of the software maker's stock valued at $28,000 after buying an additional 2,198 shares during the last quarter. Squarepoint Ops LLC increased its position in shares of Immersion by 34.4% during the second quarter. Squarepoint Ops LLC now owns 549,689 shares of the software maker's stock worth $3,721,000 after acquiring an additional 140,741 shares during the last quarter. AXQ Capital LP purchased a new stake in shares of Immersion during the second quarter worth about $161,000. Two Sigma Securities LLC purchased a new stake in shares of Immersion during the second quarter worth about $71,000. Finally, Caitlin John LLC acquired a new position in shares of Immersion in the second quarter worth about $27,000. Hedge funds and other institutional investors own 60.57% of the company's stock.

About Immersion

Immersion Corporation is a technology company that develops and licenses haptic technologies, which enable electronic devices to provide tactile feedback such as vibrations, textures and other touch sensations. Its technologies are designed to make digital interactions more intuitive and immersive.

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

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