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American Tech Report

Immersion Corporation

Jun 27, 2023

IMMR:NASDAQ
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (US$)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Immersion Corporation (NASDAQ: IMMR) is a licensing business with an emphasis on haptic technology creation, acceleration, and expansion through licensing. The company's main business is concentrated on the mobility, gaming, and automotive industries. This includes entertainment, wearable technology, virtual and augmented reality, and the Internet of Things for homes, businesses, and industries. With clients including Samsung, LG, Huawei, Sony, Microsoft, BMW, Audi, Mercedes-Benz, Intuitive Surgicals, Fitbit, and many more, Immersion Corporation serves a variety of significant organizations.

Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

 

Price Performance:

  • IMMR’s share price has decreased by 58% over the last month. However, in the longer term, the stock has given a return of 30.68% over the last nine months.
  • The stock is leaning towards the upper band of its 52-week range of USD 9.25 and 52-week low price of USD 4.79, with the current price near a decent support zone of USD 6.00-USD 6.50.
  • The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 35.25.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

Having a bigger profit margin than the industry standard, IMMR is more adept at cost management, negotiating favorable terms with suppliers, and achieving higher levels of operational efficiency. The primary reason for such a high profitability ratio is the increase in net gains from investments in marketable equity securities and derivative instruments. A higher current ratio compared to rivals also suggests that the company is managing its working capital and short-term liquidity well.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~27.69% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc. and Millennium Management LLC are the biggest shareholders, holding the maximum stake in the company at ~4.73% and ~3.86%, respectively.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Price Performance:

  • IMMR’s share price has decreased by 58% over the last month. However, in the longer term, the stock has given a return of 30.68% over the last nine months.
  • The stock is leaning towards the upper band of its 52-week range of USD 9.25 and 52-week low price of USD 4.79, with the current price near a decent support zone of USD 6.00-USD 6.50.
  • The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 35.25.

4.2 Fundamental Valuation

Valuation Methodology: Price/ Earnings Multiple-Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 26, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.