Canada Pension Plan Investment Board Buys New Holdings in InterDigital, Inc. $IDCC

Key Points

• Canada Pension Plan Investment Board acquired 47,300 InterDigital shares worth approximately $13.4 million, representing a 0.18% stake. Institutional investors collectively own 99.83% of the company.
• InterDigital reported strong quarterly results, with EPS of $4.62 versus the $0.90 consensus estimate and revenue of $260.2 million versus $143.1 million expected. The company also raised its fiscal 2026 EPS guidance to $10.85–$12.81.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $416.67 price target, although Weiss Ratings downgraded the stock to “Hold.” Shares recently traded at $335.15 and carry a quarterly dividend of $0.70.

Canada Pension Plan Investment Board purchased a new position in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 47,300 shares of the Wireless communications provider's stock, valued at approximately $13,392,000. Canada Pension Plan Investment Board owned 0.18% of InterDigital as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also added to or reduced their stakes in IDCC. Kemnay Advisory Services Inc. bought a new stake in shares of InterDigital during the fourth quarter valued at approximately $26,000. Keating Financial Advisory Services Inc. acquired a new position in shares of InterDigital during the second quarter worth approximately $25,000. Anchor Investment Management LLC bought a new position in shares of InterDigital in the 1st quarter worth $30,000. Leonteq Securities AG bought a new position in shares of InterDigital in the 4th quarter worth $35,000. Finally, Hantz Financial Services Inc. grew its position in InterDigital by 219.0% in the 4th 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 during the period. Institutional investors own 99.83% of the company's stock.

Analyst Ratings Changes

A number of research analysts have 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 upgraded shares of InterDigital from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, InterDigital has an average rating of "Buy" and an average price target of $416.67.

InterDigital Stock Up 0.1%

Shares of NASDAQ:IDCC opened at $335.15 on Friday. The business's 50 day moving average is $298.94 and its 200 day moving average is $312.77. InterDigital, Inc. has a 12-month low of $249.14 and a 12-month high of $412.60. The stock has a market cap of $8.65 billion, a price-to-earnings ratio of 38.66 and a beta of 1.43. 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 released its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating analysts' consensus estimates 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 analyst estimates of $143.10 million. During the same period in the prior year, the firm posted $6.52 EPS. InterDigital'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 forecast that InterDigital, Inc. will post 9.76 earnings per share for the current fiscal year.

InterDigital Dividend Announcement

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

More InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Strong Q2 results and higher outlook support the growth story. InterDigital reported quarterly EPS of $4.62 versus the $0.90 consensus estimate and revenue of $260.2 million versus expectations of $143.1 million. Record recurring revenue, an Amazon licensing agreement and raised fiscal 2026 guidance of $10.85-$12.81 EPS provide additional catalysts. Should IDCC Stock Be in Your Portfolio After Solid Q2 Results?
• Positive Sentiment: Analysts raised multiple forward earnings estimates. Zacks Research increased its fiscal 2026 EPS forecast to $10.13 from $7.41, fiscal 2027 EPS to $8.49 from $7.82 and fiscal 2028 EPS to $10.83 from $8.88. Estimates for individual 2027 and 2028 quarters were also raised, and Zacks maintained a “Strong-Buy” rating. The revisions signal improving expectations for licensing revenue and profitability.
• Positive Sentiment: Wall Street’s consensus target implies further upside. A Zacks analysis cited a consensus price target indicating approximately 26.2% potential upside. While price targets alone have limited predictive value, the accompanying upward earnings-revision trend is a more constructive near-term signal. Wall Street Analysts See a 26.24% Upside in InterDigital
• Neutral Sentiment: Valuation is described as roughly fair despite strong returns. InterDigital’s profitability and returns remain attractive, but its elevated P/E ratio means additional gains may depend on continued earnings growth and successful licensing execution. InterDigital Stock Looks Fairly Valued While Returns Stay Strong

Insider Activity at InterDigital

In related news, Director Derek K. Aberle sold 522 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $144,406.08. Following the transaction, the director directly owned 7,620 shares of the company's stock, valued at $2,107,996.80. This trade represents a 6.41% decrease in their ownership of the stock. The transaction 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 D. Jr. Markley sold 400 shares of the business's stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $300.00, for a total transaction of $120,000.00. Following the transaction, the director owned 11,735 shares in the company, valued at approximately $3,520,500. This trade represents a 3.30% 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. Insiders sold 7,672 shares of company stock valued at $2,240,797 over the last three months. Insiders own 3.50% of the company's stock.

InterDigital 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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