InterDigital (NASDAQ:IDCC) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded InterDigital from “strong buy” to “hold,” while Weiss Ratings upgraded it to “buy (b).” Analysts maintain a “Moderate Buy” consensus with an average price target of $450.
• InterDigital’s latest quarterly results significantly exceeded expectations, with EPS of $4.62 versus the $0.90 consensus and revenue of $260.17 million versus estimates of $143.10 million, although revenue declined 13.4% year over year.
• The stock opened at $326.78 and has traded between $249.14 and $412.60 over the past year. Insiders sold 4,800 shares worth about $1.6 million in the last quarter, while institutional investors own 99.83% of the outstanding shares.

InterDigital (NASDAQ:IDCC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

Separately, Weiss Ratings upgraded shares of InterDigital from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, InterDigital presently has a consensus rating of "Moderate Buy" and an average price target of $450.00.

InterDigital Price Performance

IDCC stock opened at $326.78 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $8.43 billion, a PE ratio of 37.69 and a beta of 1.43. The business's fifty day moving average price is $334.40 and its 200 day moving average price is $307.67. InterDigital has a 12-month low of $249.14 and a 12-month high of $412.60.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%. The business had revenue of $260.17 million during the quarter, compared to analysts' expectations of $143.10 million. During the same quarter last year, the business posted $6.52 EPS. The business's quarterly revenue was down 13.4% compared to the same quarter last year. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. On average, sell-side analysts anticipate that InterDigital will post 9.42 EPS for the current year.

Insider Transactions at InterDigital

In related news, CTO Rajesh Pankaj sold 1,500 shares of InterDigital stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $334.32, for a total transaction of $501,480.00. Following the completion of the sale, the chief technology officer owned 63,516 shares in the company, valued at approximately $21,234,669.12. This trade represents a 2.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan Gillman sold 300 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $331.06, for a total value of $99,318.00. Following the completion of the transaction, the director owned 22,736 shares of the company's stock, valued at $7,526,980.16. This trade represents a 1.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 4,800 shares of company stock valued at $1,595,118. 3.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On InterDigital

Several hedge funds have recently modified their holdings of the stock. Keating Financial Advisory Services Inc. bought a new position in shares of InterDigital in the 2nd quarter worth about $25,000. Anchor Investment Management LLC bought a new stake in shares of InterDigital during the 1st quarter valued at about $30,000. Polaris Financial Partners bought a new stake in shares of InterDigital during the 3rd quarter valued at about $33,000. Caitong International Asset Management Co. Ltd raised its stake in InterDigital by 431.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 239 shares of the Wireless communications provider's stock worth $76,000 after acquiring an additional 194 shares during the period. Finally, Allworth Financial LP acquired a new stake in InterDigital during the second quarter worth about $95,000. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

InterDigital Company Profile

InterDigital, Inc is a technology research and development company that creates advanced wireless, video and related connectivity technologies. Its work supports communications across cellular networks, including 4G and 5G, as well as Wi-Fi, the Internet of Things and other connected devices.

The company's primary business is developing intellectual property and licensing its patented technologies to manufacturers and other industry participants. Its portfolio includes innovations related to wireless communications, radio access networks, signal processing, video compression and delivery, and connected-device functionality.

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