InterDigital, Inc. (NASDAQ:IDCC) Plans Dividend Increase - $0.75 Per Share

Key Points

• InterDigital plans to raise its quarterly dividend to $0.75 per share, up 7.1% from $0.70. Shareholders of record on October 14 will receive the payment on October 28, representing an annualized dividend of $3.00 and a 0.9% yield.
• The dividend appears well covered, with a current payout ratio of 42.4%; analysts expect earnings of $9.02 per share next year versus the projected $2.80 annual dividend.
• InterDigital recently reported quarterly earnings of $4.62 per share, well above the $0.90 consensus estimate, though revenue declined 13.4% year over year. Insiders sold 6,922 shares worth approximately $2.1 million over the past 90 days.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) announced a quarterly dividend on Wednesday, September 9th. Stockholders of record on Wednesday, October 14th will be given a dividend of 0.75 per share by the Wireless communications provider on Wednesday, October 28th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, October 14th. This is a 7.1% increase from InterDigital's previous quarterly dividend of $0.70.

InterDigital has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 3 years. InterDigital has a dividend payout ratio of 42.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect InterDigital to earn $9.02 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 31.0%.

InterDigital Stock Down 0.5%

IDCC opened at $339.34 on Thursday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.74 and a current ratio of 1.74. The company has a market capitalization of $8.76 billion, a PE ratio of 39.14 and a beta of 1.43. The stock's fifty day moving average is $307.62 and its 200-day moving average is $310.76. InterDigital has a one year low of $249.14 and a one year high of $412.60.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share 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 earnings per share. The company'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. On average, equities analysts predict that InterDigital will post 9.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Derek Aberle sold 522 shares of the business's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $276.64, for a total transaction of $144,406.08. Following the sale, the director directly owned 7,620 shares of the company's stock, valued at $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Markley, Jr. sold 400 shares of the company's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $300.00, for a total value of $120,000.00. Following the sale, the director directly owned 11,735 shares of the company's stock, valued at approximately $3,520,500. This represents a 3.30% 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. Over the last ninety days, insiders sold 6,922 shares of company stock worth $2,119,012. Corporate insiders own 3.50% of the company's stock.

Institutional Trading of InterDigital

Several institutional investors and hedge funds have recently bought and sold shares of IDCC. Tidal Investments LLC boosted its holdings in shares of InterDigital by 19.0% in the second quarter. Tidal Investments LLC now owns 78,161 shares of the Wireless communications provider's stock worth $22,130,000 after buying an additional 12,501 shares during the period. Integrated Wealth Concepts LLC increased its position in shares of InterDigital by 5.0% in the second quarter. Integrated Wealth Concepts LLC now owns 1,447 shares of the Wireless communications provider's stock worth $410,000 after acquiring an additional 69 shares in the last quarter. IFP Advisors Inc raised its holdings in shares of InterDigital by 3.7% during the second quarter. IFP Advisors Inc now owns 1,292 shares of the Wireless communications provider's stock valued at $366,000 after acquiring an additional 46 shares during the period. Nykredit A S acquired a new stake in shares of InterDigital during the second quarter valued at approximately $259,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of InterDigital in the 2nd quarter valued at approximately $2,534,000. Institutional investors and hedge funds own 99.83% of the company's stock.

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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