Bank of America Corp DE Acquires New Position in InterDigital, Inc. $IDCC

Key Points

• Bank of America initiated a $46.95 million position in InterDigital during the second quarter, acquiring 165,836 shares and owning approximately 0.64% of the company. Institutional investors and hedge funds collectively hold 99.83% of InterDigital’s stock.
• InterDigital reported quarterly EPS of $4.62, far exceeding the $0.90 consensus estimate, while revenue reached $260.17 million. The company also raised its quarterly dividend from $0.70 to $0.75 per share.
• Analysts have a consensus “Buy” rating and a $450 price target, compared with the stock’s opening price of $323.05. Meanwhile, insiders sold 4,800 shares worth approximately $1.52 million during the last quarter.

Bank of America Corp DE bought a new stake in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 165,836 shares of the Wireless communications provider's stock, valued at approximately $46,953,000. Bank of America Corp DE owned about 0.64% of InterDigital at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Geode Capital Management LLC lifted its position in InterDigital by 18.6% in the 4th quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock valued at $251,250,000 after purchasing an additional 123,686 shares during the last quarter. Reinhart Partners LLC. lifted its position in shares of InterDigital by 1.3% during the 4th quarter. Reinhart Partners LLC. now owns 417,639 shares of the Wireless communications provider's stock valued at $132,973,000 after acquiring an additional 5,293 shares during the last quarter. Norges Bank acquired a new position in shares of InterDigital in the 4th quarter valued at $128,918,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of InterDigital by 135.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 219,388 shares of the Wireless communications provider's stock worth $66,255,000 after buying an additional 126,328 shares during the period. Finally, Royal Bank of Canada boosted its stake in InterDigital by 375.7% in the 1st quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider's stock worth $60,297,000 after purchasing an additional 157,687 shares during the period. 99.83% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at InterDigital

In other InterDigital news, CTO Rajesh Pankaj sold 1,500 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $324.88, for a total value of $487,320.00. Following the completion of the transaction, the chief technology officer directly owned 66,516 shares in the company, valued at approximately $21,609,718.08. This trade represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 stock was sold at an average price of $331.06, for a total transaction of $99,318.00. Following the completion of the sale, the director directly owned 22,736 shares in the company, valued at approximately $7,526,980.16. This represents a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 4,800 shares of company stock worth $1,522,638. Corporate insiders own 3.50% of the company's stock.

InterDigital Price Performance

Shares of NASDAQ:IDCC opened at $323.05 on Monday. InterDigital, Inc. has a one year low of $249.14 and a one year high of $412.60. The company has a 50 day moving average of $315.94 and a 200-day moving average of $309.10. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74. The stock has a market cap of $8.34 billion, a price-to-earnings ratio of 37.26 and a beta of 1.43.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $260.17 million for the quarter, compared to analysts' expectations of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.InterDigital's revenue for the quarter was down 13.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $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. On average, sell-side analysts forecast that InterDigital, Inc. will post 9.52 earnings per share for the current year.

InterDigital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Wednesday, October 14th. This is a positive change from InterDigital's previous quarterly dividend of $0.70. InterDigital's dividend payout ratio is 32.30%.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Weiss Ratings raised shares of InterDigital from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday. Zacks Research upgraded shares of InterDigital from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $450.00.

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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