Zacks Research Reduces Earnings Estimates for InterDigital

Key Points

• Zacks Research cut InterDigital’s Q3 2026 EPS estimate to $1.68 from $1.78, while maintaining a “Strong Buy” rating. The consensus full-year EPS estimate is $9.76.
• InterDigital reported substantial upside in its latest quarter, earning $4.62 per share versus the $0.90 consensus estimate, although revenue declined 13.4% year over year. The company’s FY 2026 EPS guidance remains $10.85–$12.81.
• The company raised its quarterly dividend to $0.75 per share from $0.70, implying a $3.00 annual payout and a 0.9% yield. Despite a recent “Hold” downgrade from Weiss Ratings, analysts overall maintain a “Buy” consensus with a $450 price target.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Zacks Research decreased their Q3 2026 EPS estimates for shares of InterDigital in a research note issued to investors on Friday, September 11th. Zacks Research analyst Team now forecasts that the Wireless communications provider will earn $1.68 per share for the quarter, down from their previous estimate of $1.78. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for InterDigital's current full-year earnings is $9.76 per share. Zacks Research also issued estimates for InterDigital's Q1 2027 earnings at $1.99 EPS.

Separately, Weiss Ratings downgraded InterDigital from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $450.00.

InterDigital Price Performance

Shares of IDCC stock opened at $350.13 on Monday. The firm has a market cap of $9.04 billion, a PE ratio of 40.38 and a beta of 1.43. InterDigital has a 12 month low of $249.14 and a 12 month high of $412.60. The stock has a 50 day moving average of $310.29 and a 200-day moving average of $310.66. 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 (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings results 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. The business had revenue of $260.17 million during the quarter, compared to analyst estimates of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The firm's revenue was down 13.4% on a year-over-year basis. During the same period in the previous year, the company earned $6.52 EPS. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS.

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from InterDigital's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Wednesday, October 14th. InterDigital's payout ratio is presently 32.30%.

Insider Transactions at InterDigital

In other news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $338.00, for a total value of $507,000.00. Following the completion of the sale, the chief technology officer directly owned 65,016 shares of the company's stock, valued at $21,975,408. This represents a 2.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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 company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $331.06, for a total transaction of $99,318.00. Following the completion of the sale, the director owned 22,736 shares of the company's stock, valued at approximately $7,526,980.16. This represents a 1.30% decrease in their position. 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 ninety days, insiders sold 5,200 shares of company stock worth $1,642,638. 3.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On InterDigital

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Keating Financial Advisory Services Inc. bought a new stake in shares of InterDigital in the 2nd quarter valued at about $25,000. Kemnay Advisory Services Inc. acquired a new position in shares of InterDigital in the fourth quarter valued at about $26,000. Anchor Investment Management LLC bought a new position in shares of InterDigital during the first quarter worth approximately $30,000. Leonteq Securities AG bought a new position in InterDigital during the 4th quarter worth $35,000. Finally, Hantz Financial Services Inc. raised its stake in InterDigital by 219.0% in the fourth quarter. Hantz Financial Services Inc. now owns 134 shares of the Wireless communications provider's stock valued at $43,000 after purchasing an additional 92 shares in the last quarter. Institutional investors own 99.83% of the company's stock.

About InterDigital

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.

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