Hodges Capital Management Inc. Purchases Shares of 8,475 InterDigital, Inc. $IDCC

Key Points

• Hodges Capital Management Inc. has made a new investment of approximately $1.75 million in InterDigital, purchasing 8,475 shares in the first quarter.
• Analysts from Roth Capital have increased their price target for InterDigital from $270.00 to $350.00, maintaining a "buy" rating.
• InterDigital reported $6.52 earnings per share for the last quarter, significantly exceeding analysts' expectations of $2.77, indicating strong financial performance.

Hodges Capital Management Inc. purchased a new position in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 8,475 shares of the Wireless communications provider's stock, valued at approximately $1,752,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of IDCC. GAMMA Investing LLC raised its stake in InterDigital by 31,724.6% during the 1st quarter. GAMMA Investing LLC now owns 299,788 shares of the Wireless communications provider's stock worth $619,810,000 after acquiring an additional 298,846 shares in the last quarter. New Vernon Capital Holdings II LLC grew its position in InterDigital by 25,257.5% during the 1st quarter. New Vernon Capital Holdings II LLC now owns 204,889 shares of the Wireless communications provider's stock worth $42,361,000 after purchasing an additional 204,081 shares during the last quarter. Millennium Management LLC grew its position in InterDigital by 3,962.5% during the 4th quarter. Millennium Management LLC now owns 128,780 shares of the Wireless communications provider's stock worth $24,947,000 after purchasing an additional 125,610 shares during the last quarter. Bessemer Group Inc. grew its position in InterDigital by 152,729.3% during the 1st quarter. Bessemer Group Inc. now owns 114,622 shares of the Wireless communications provider's stock worth $23,700,000 after purchasing an additional 114,547 shares during the last quarter. Finally, Nuveen LLC purchased a new position in InterDigital during the 1st quarter worth $20,967,000. 99.83% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at InterDigital

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

Wall Street Analyst Weigh In

Separately, Roth Capital raised their price objective on shares of InterDigital from $270.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. One investment analyst has rated the stock with a Buy rating, According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $350.00.

InterDigital Stock Performance

Shares of NASDAQ:IDCC traded up $9.88 during midday trading on Thursday, hitting $337.05. The stock had a trading volume of 98,194 shares, compared to its average volume of 324,597. The company has a market capitalization of $8.70 billion, a PE ratio of 24.03, a P/E/G ratio of 1.61 and a beta of 1.42. The stock has a 50 day moving average price of $264.37 and a two-hundred day moving average price of $230.68. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.02. InterDigital, Inc. has a 1 year low of $135.13 and a 1 year high of $340.10.

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

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th will be issued a dividend of $0.70 per share. This is an increase from InterDigital's previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, October 8th. InterDigital's payout ratio is presently 17.11%.

InterDigital Company Profile

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.