InterDigital, Inc. (NASDAQ:IDCC) Given Consensus Rating of "Buy" by Brokerages

Key Points

• Analysts maintain a “Buy” consensus on InterDigital, with three buy ratings, one strong-buy rating and one hold rating. The average 12-month price target is $416.67, versus a recent share price of $340.94.
• InterDigital reported quarterly EPS of $4.62, substantially above the $0.90 consensus estimate, while revenue reached $260.17 million. However, revenue declined 13.4% year over year, and the company guided to fiscal 2026 EPS of $10.85–$12.81.
• Institutional investors own 99.83% of the stock and several major funds increased their positions. Meanwhile, insiders sold 6,922 shares worth approximately $2.05 million over the past 90 days, and the company maintains a quarterly dividend of $0.70.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) have earned an average rating of "Buy" from the five ratings firms that are covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $416.6667.

A number of analysts have recently weighed in on the stock. Weiss Ratings lowered shares of InterDigital from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Zacks Research raised shares of InterDigital from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 30th.

Insider Transactions at InterDigital

In related news, Director Joan Gillman sold 300 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $331.06, for a total transaction of $99,318.00. Following the sale, the director directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of InterDigital stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $324.88, for a total value of $487,320.00. Following the transaction, the chief technology officer owned 66,516 shares of the company's stock, valued at approximately $21,609,718.08. This represents a 2.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 6,922 shares of company stock valued at $2,047,012. 3.50% of the stock is owned by insiders.

Hedge Funds Weigh In On InterDigital

Institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System boosted its holdings in InterDigital by 27,779.5% during the second quarter. California State Teachers Retirement System now owns 8,412,642 shares of the Wireless communications provider's stock worth $2,381,871,000 after buying an additional 8,382,467 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of InterDigital by 62.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock worth $707,477,000 after acquiring an additional 854,845 shares during the period. Geode Capital Management LLC raised its position in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock worth $251,250,000 after acquiring an additional 123,686 shares during the period. Reinhart Partners LLC. boosted its stake in shares of InterDigital by 9.0% during the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock worth $130,359,000 after acquiring an additional 38,115 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of InterDigital by 24.8% during the 4th quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider's stock worth $143,546,000 after acquiring an additional 89,647 shares in the last quarter. 99.83% of the stock is owned by hedge funds and other institutional investors.

InterDigital Trading Up 0.9%

InterDigital stock opened at $340.94 on Wednesday. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.01. InterDigital has a 52 week low of $249.14 and a 52 week high of $412.60. The company has a market capitalization of $8.80 billion, a price-to-earnings ratio of 39.32 and a beta of 1.43. The stock has a 50-day moving average price of $306.48 and a 200 day moving average price of $310.82.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping the consensus estimate of $0.90 by $3.72. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The company had revenue of $260.17 million for the quarter, compared to the consensus estimate of $143.10 million. During the same quarter in the prior year, the company earned $6.52 EPS. InterDigital's quarterly revenue was down 13.4% on a year-over-year basis. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Sell-side analysts anticipate that InterDigital will post 9.76 EPS for the current year.

InterDigital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Wednesday, July 8th. InterDigital's payout ratio is 32.30%.

InterDigital Company Profile

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company's principal services include patent licensing, technology evaluation and consulting.

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