Fundsmith LLP Acquires Shares of 60,324 InterDigital, Inc. $IDCC

Key Points

• Fundsmith LLP acquired 60,324 InterDigital shares worth approximately $17.1 million, representing about 0.23% of the company. Institutional investors and hedge funds collectively own 99.83% of InterDigital.
• InterDigital significantly exceeded second-quarter expectations, reporting $4.62 in EPS versus the $0.90 consensus and $260.2 million in revenue versus $143.1 million expected. The company raised its fiscal 2026 EPS guidance to $10.85–$12.81.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and an average price target of $416.67, although Weiss Ratings downgraded the stock to “Hold.” InterDigital also pays a quarterly dividend of $0.70, equivalent to a 0.8% annual yield.

Fundsmith LLP bought a new stake in InterDigital, Inc. (NASDAQ:IDCC - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 60,324 shares of the Wireless communications provider's stock, valued at approximately $17,080,000. Fundsmith LLP owned about 0.23% of InterDigital as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the business. Price T Rowe Associates Inc. MD increased its position in InterDigital by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock valued at $707,477,000 after acquiring an additional 854,845 shares during the period. Norges Bank acquired a new stake in InterDigital during the 4th quarter worth approximately $128,918,000. Bank of America Corp DE acquired a new stake in InterDigital during the 2nd quarter worth approximately $46,953,000. Royal Bank of Canada grew its stake in shares of InterDigital by 375.7% in the 1st quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider's stock valued at $60,297,000 after purchasing an additional 157,687 shares during the last quarter. Finally, Neumeier Poma Investment Counsel LLC purchased a new position in shares of InterDigital in the 2nd quarter valued at approximately $42,350,302. Institutional investors and hedge funds own 99.83% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Weiss Ratings lowered InterDigital from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Zacks Research upgraded shares of InterDigital from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $416.67.

InterDigital Stock Performance

NASDAQ IDCC opened at $335.15 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. The business's 50 day moving average is $298.94 and its two-hundred day moving average is $312.32. InterDigital, Inc. has a 12-month low of $249.14 and a 12-month high of $412.60. The stock has a market capitalization of $8.65 billion, a price-to-earnings ratio of 38.66 and a beta of 1.43.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $143.10 million. During the same period in the prior year, the business posted $6.52 EPS. The company's revenue for the quarter 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. Research analysts expect that InterDigital, Inc. will post 9.76 EPS for the current year.

InterDigital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were issued a $0.70 dividend. The ex-dividend date of this dividend was Wednesday, July 8th. This represents a $2.80 dividend on an annualized basis and a yield of 0.8%. InterDigital's dividend payout ratio (DPR) is 32.30%.

Key Stories Impacting InterDigital

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 other news, Director Joan H. 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 transaction, the director directly owned 22,736 shares of the company's stock, valued at $7,526,980.16. This represents a 1.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Jr. Markley sold 400 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total transaction of $120,000.00. Following the completion of the transaction, the director owned 11,735 shares of the company's stock, valued at $3,520,500. This represents a 3.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 7,672 shares of company stock worth $2,240,797. 3.50% of the stock is currently owned by insiders.

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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