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

Key Points

• Immersion shares moved above their 200-day moving average, reaching $7.75 and last trading at $7.69 versus the $6.50 average.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a $13.50 average price target, despite BWS Financial maintaining a “Buy” rating.
• The company exceeded quarterly expectations with $0.12 in earnings per share versus a $0.05 estimate and $270 million in revenue, but its dividend payout ratio is elevated at 214.29%; insiders have also sold shares recently.

Immersion Corporation (NASDAQ:IMMR - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $6.50 and traded as high as $7.75. Immersion shares last traded at $7.69, with a volume of 304,694 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Wall Street Zen upgraded shares of Immersion from a "sell" rating to a "hold" rating in a research report on Tuesday, July 28th. Weiss Ratings cut shares of Immersion from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, August 11th. BWS Financial reaffirmed a "buy" rating and set a $13.50 price target on shares of Immersion in a research note on Tuesday, July 28th. Finally, Zacks Research raised shares of Immersion to a "hold" rating in a research note on Friday, May 8th. 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 MarketBeat.com, Immersion has an average rating of "Hold" and an average target price of $13.50.

Immersion Price Performance

The company has a current ratio of 2.30, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13. The business's 50-day simple moving average is $7.08 and its two-hundred day simple moving average is $6.50. The firm has a market cap of $255.23 million, a price-to-earnings ratio of 54.93 and a beta of 1.02.

Immersion (NASDAQ:IMMR - Get Free Report) last posted its quarterly earnings data on Friday, July 24th. The software maker reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.07. Immersion had a net margin of 0.26% and a return on equity of 0.80%. The company had revenue of $270.00 million during the quarter, compared to analysts' expectations of $230.00 million. As a group, research analysts expect that Immersion Corporation will post 0.26 EPS for the current fiscal year.

Immersion Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Monday, July 20th were issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date was Monday, July 20th. Immersion's dividend payout ratio (DPR) is presently 214.29%.

Insider Activity

In related news, major shareholder Toro 18 Holdings Llc sold 200,000 shares of the company's stock in a transaction dated 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 sale, the insider owned 1,344,647 shares in the company, valued at $7,019,057.34. This represents a 12.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last 90 days, insiders sold 266,896 shares of company stock valued at $1,387,218. 12.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Immersion

Institutional investors have recently added to or reduced their stakes in the business. Caitlin John LLC bought a new stake in shares of Immersion in the 2nd quarter valued at $27,000. Russell Investments Group Ltd. boosted its stake in Immersion by 85.5% during the third quarter. Russell Investments Group Ltd. now owns 4,429 shares of the software maker's stock worth $33,000 after acquiring an additional 2,041 shares in the last quarter. Strs Ohio bought a new position in Immersion during the first quarter worth $27,000. Persistent Asset Partners Ltd acquired a new stake in Immersion in the second quarter worth $41,000. Finally, Tower Research Capital LLC TRC grew its holdings in Immersion by 677.7% in the second quarter. Tower Research Capital LLC TRC now owns 7,738 shares of the software maker's stock worth $61,000 after purchasing an additional 6,743 shares during the period. 60.57% of the stock is owned by institutional investors and hedge funds.

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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