Immersion (NASDAQ:IMMR) Stock Breaks Below 200 Day Moving Average - Here's What Happened

Key Points

• Immersion shares fell below their 200-day moving average of $6.71 on Thursday, reaching $6.62 before last trading at $6.67.
• Analyst sentiment is currently Hold, with one Buy and two Hold ratings and a consensus price target of $13.50.
• The company reported quarterly EPS of $0.17, beating the $0.06 consensus estimate. It also pays a quarterly dividend of $0.075 per share, equivalent to a 4.5% annualized yield.

Immersion Corporation (NASDAQ:IMMR - Get Free Report)'s share price crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $6.71 and traded as low as $6.62. Immersion shares last traded at $6.67, with a volume of 831,344 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have commented on IMMR. Weiss Ratings upgraded Immersion from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, September 16th. BWS Financial reissued a "buy" rating and set a $13.50 price target on shares of Immersion in a research report on Tuesday, July 28th. Finally, Wall Street Zen raised Immersion from a "sell" rating to a "hold" rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $13.50.

Immersion Stock Down 6.8%

The stock has a market cap of $221.48 million, a price-to-earnings ratio of 19.62 and a beta of 0.96. The company has a current ratio of 2.14, a quick ratio of 1.16 and a debt-to-equity ratio of 0.22. The firm's 50 day moving average is $7.29 and its two-hundred day moving average is $6.71.

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

Immersion Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Friday, October 16th were paid a $0.0750 dividend. This represents a $0.30 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend was Friday, October 16th. Immersion's payout ratio is presently 88.24%.

Insider Activity at Immersion

In other Immersion news, CEO Eric Singer purchased 41,000 shares of Immersion stock in a transaction on Wednesday, October 7th. The shares were bought at an average price of $7.14 per share, with a total value of $292,740.00. Following the purchase, the chief executive officer directly owned 2,230,664 shares in the company, valued at $15,926,940.96. This trade represents a 1.87% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Toro 18 Holdings Llc sold 105,541 shares of the firm's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $4.63, for a total value of $488,654.83. Following the sale, the insider owned 1,101,832 shares in the company, valued at $5,101,482.16. This trade represents a 8.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 442,815 shares of company stock valued at $2,201,304 over the last ninety days. 10.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Immersion

Several large investors have recently added to or reduced their stakes in IMMR. First Trust Advisors LP grew its holdings 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 purchasing an additional 1,819 shares during the period. GAMMA Investing LLC raised its stake in Immersion by 134.4% during the third quarter. GAMMA Investing LLC now owns 3,834 shares of the software maker's stock worth $28,000 after purchasing an additional 2,198 shares during the period. Caitlin John LLC purchased a new position in Immersion during the second quarter worth approximately $27,000. Strs Ohio purchased a new position in Immersion during the first quarter worth approximately $27,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Immersion in the 2nd quarter valued at $41,000. 60.57% of the stock is currently owned by hedge funds and other institutional investors.

Immersion Company Profile

Immersion Corporation NASDAQ: IMMR develops and licenses haptic technology, which enables electronic devices to communicate information through touch and vibration. Its technologies are designed to make digital interactions more intuitive and immersive by providing tactile feedback in response to user actions.

The company's products and intellectual property are used in a range of applications, including smartphones, gaming systems and controllers, automotive interfaces, consumer electronics, and other specialized devices.

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