The application of immersed boundary methods in static analyses is often impeded by poorly cut elements (small cut elements problem), leading to ill-conditioned linear systems of equations and stability problems. While these concerns may not be paramount in explicit dynamics, a substantial reduction in the critical time step size based on the smallest volume fraction χ of a cut element is observed. This reduction can be so drastic that it renders explicit time integration schemes impractical. To tackle this challenge, we propose the use of a dedicated eigenvalue stabilization (EVS) technique. The EVS-technique serves a dual purpose. Beyond merely improving the condition number of system matrices, it plays a pivotal role in extending the critical time increment, effectively broadening the stability region in explicit dynamics. As a result, our approach enables robust and efficient analyses of high-frequency transient problems using immersed boundary methods. A key advantage of the stabilization method lies in the fact that only element-level operations are required. This is accomplished by computing all eigenvalues of the element matrices and subsequently introducing a stabilization term that mitigates the adverse effects of cutting. Notably, the stabilization of the mass matrix M_c of cut elements – especially for high polynomial orders p of the shape functions – leads to a significant raise in the critical time step size Δt_cr. To demonstrate the efficiency of our technique, we present two specifically selected dynamic benchmark examples related to wave propagation analysis, where an explicit time integration scheme must be employed to leverage the increase in the critical time step size.