Fred Alger Management LLC Boosts Stake in InterDigital, Inc. $IDCC

Key Points

• Fred Alger Management LLC has increased its stake in InterDigital, Inc. by 90.6% in the first quarter, now holding approximately $12.16 million worth of shares.
• InterDigital reported a quarterly earnings per share of $6.52, significantly surpassing analysts' estimates of $2.77, and achieved a revenue of $300.60 million for the quarter.
• The company recently announced a quarterly dividend of $0.60 per share, reflecting an annualized yield of 0.8% with a dividend payout ratio of 17.11%.

Fred Alger Management LLC lifted its position in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 90.6% during the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 58,821 shares of the Wireless communications provider's stock after purchasing an additional 27,967 shares during the period. Fred Alger Management LLC owned about 0.23% of InterDigital worth $12,161,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in IDCC. Captrust Financial Advisors increased its position in InterDigital by 1.2% in the 4th quarter. Captrust Financial Advisors now owns 14,036 shares of the Wireless communications provider's stock valued at $2,719,000 after acquiring an additional 160 shares during the period. Cetera Investment Advisers increased its position in InterDigital by 20.2% in the 4th quarter. Cetera Investment Advisers now owns 2,902 shares of the Wireless communications provider's stock valued at $562,000 after acquiring an additional 487 shares during the period. Deutsche Bank AG increased its position in InterDigital by 40.9% in the 4th quarter. Deutsche Bank AG now owns 29,668 shares of the Wireless communications provider's stock valued at $5,747,000 after acquiring an additional 8,616 shares during the period. Ensign Peak Advisors Inc increased its position in InterDigital by 34.2% in the 4th quarter. Ensign Peak Advisors Inc now owns 16,054 shares of the Wireless communications provider's stock valued at $3,110,000 after acquiring an additional 4,090 shares during the period. Finally, Jefferies Financial Group Inc. acquired a new position in InterDigital in the 4th quarter valued at about $1,136,000. Institutional investors and hedge funds own 99.83% of the company's stock.

Analyst Ratings Changes

Separately, Roth Capital boosted their target price on InterDigital from $270.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $350.00.

InterDigital Stock Performance

NASDAQ IDCC traded down $2.00 on Friday, hitting $322.87. 332,399 shares of the company's stock were exchanged, compared to its average volume of 274,892. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.96 and a quick ratio of 1.96. The firm's 50-day moving average price is $258.33 and its two-hundred day moving average price is $228.55. InterDigital, Inc. has a fifty-two week low of $132.98 and a fifty-two week high of $327.49. The firm has a market cap of $8.33 billion, a price-to-earnings ratio of 23.01, a P/E/G ratio of 1.61 and a beta of 1.42.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $3.75. The company had revenue of $300.60 million for the quarter, compared to analysts' expectations of $167.93 million. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The firm's quarterly revenue was up 34.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.57 EPS. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. On average, research analysts expect that InterDigital, Inc. will post 9.21 EPS for the current year.

Insider Activity at InterDigital

In other news, insider Joshua D. Schmidt sold 466 shares of the business's stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $273.12, for a total transaction of $127,273.92. Following the sale, the insider owned 28,370 shares of the company's stock, valued at $7,748,414.40. The trade was a 1.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Rajesh Pankaj sold 1,000 shares of the business's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $289.78, for a total value of $289,780.00. Following the sale, the chief technology officer directly owned 66,122 shares in the company, valued at $19,160,833.16. This trade represents a 1.49% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 3,932 shares of company stock worth $1,010,930 in the last three months. Corporate insiders own 2.80% of the company's stock.

About InterDigital

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.