It’s a very rewarding trading day for investors in Immersion Corporation (NASDAQ:IMMR) with shares up over 20%, making the stock one of Wall Street’s biggest bulls of the day. The reason? The touch feedback technology developer disclosed today that Vic Viegas will step down as Chief Executive Officer and as a director.
Under Viegas leadership, Immersion shares tumbled nearly 44% this year, and investors hope the move will lead to a brighter future for Immersion.
Carl Schlachte, currently Chairman of the Board, has been unanimously elected by the Board as Interim CEO. Mr. Schlachte joined the Immersion Board in 2011 and was elected as Chairman in 2012. He currently serves as Chairman and CEO of Ventiva, Inc., which designs and develops thermal management technologies for consumer applications in mobile computing, power electronics and LED lighting. He will continue to serve as Chairman of the Board of Immersion during his tenure as Interim CEO.
“After a thorough review of our business and strategy, the Board has decided to pursue new leadership for the company. We are commencing a search for a permanent CEO, and until the completion of this process, I am honored that the Board has put its trust in me to serve as Interim CEO,” said Mr. Schlachte. “On behalf of the Board, I want to thank Vic for his years of dedicated service to Immersion. We wish him the very best.”
“Immersion’s recently announced licensing agreements continue to demonstrate that the technology and IP developed by our employees have significant value around the world,” Mr. Schlachte said. “As a long-time Board member, I am a deep believer in the value of our haptic technology solutions, as well as in our innovative culture and strong intellectual property portfolio. I am excited about the opportunities in front of Immersion.”
On the ratings front, B.Riley analyst Josh Nichols assigned a Buy rating on IMMR, with a price target of $9.75, in a report issued on November 3. The current price target represents a potential upside of 37% from where the stock is currently trading. According to TipRanks.com, Nichols has a yearly average return of 32.5%, a 45% success rate, and is ranked #332 out of 4735 analysts.
Immersion engages in the creation, design, development and licensing of patented haptic innovations and software. The firm offers touch sense platform and design services. It focuses on the following target application areas: mobile devices, wearable, consumer, mobile entertainment and other content, console gaming, automotive, medical, and commercial.