Hsbc Holdings PLC Has $250,000 Stake in InterDigital, Inc. $IDCC

Key Points

• HSBC Holdings sharply reduced its InterDigital stake by 95.4%: The fund sold 17,343 shares and retained 827 shares worth approximately $250,000. Despite the sale, institutional investors and hedge funds own 99.83% of IDCC.
• InterDigital posted a major earnings beat and raised its 2026 outlook: Second-quarter adjusted EPS was $4.62 versus the $0.90 consensus, while revenue reached $260.2 million. Full-year revenue guidance was increased to $775 million–$845 million, with EPS guidance of $10.85–$12.81.
• Analysts remain bullish, but risks persist: InterDigital has an average “Buy” rating and a $416.67 consensus price target, supported by record recurring revenue and expanding licensing opportunities. However, revenue declined 13.4% year over year, the stock may be overbought, and recent insider activity has been exclusively selling.

Hsbc Holdings PLC reduced its stake in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 95.4% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 827 shares of the Wireless communications provider's stock after selling 17,343 shares during the period. Hsbc Holdings PLC's holdings in InterDigital were worth $250,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Price T Rowe Associates Inc. MD increased its stake in shares of InterDigital by 62.5% in the fourth 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 buying an additional 854,845 shares during the period. Norges Bank bought a new position in shares of InterDigital during the fourth quarter worth about $128,918,000. Geode Capital Management LLC lifted its stake in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock worth $251,250,000 after acquiring an additional 123,686 shares during the period. M&T Bank Corp lifted its stake in shares of InterDigital by 14,563.6% in the fourth quarter. M&T Bank Corp now owns 109,244 shares of the Wireless communications provider's stock worth $34,781,000 after acquiring an additional 108,499 shares during the period. Finally, Invesco Ltd. boosted its holdings in InterDigital by 24.8% in the fourth quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider's stock valued at $143,546,000 after acquiring an additional 89,647 shares during the last quarter. 99.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Weiss Ratings downgraded shares of InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, June 12th. Zacks Research upgraded shares of InterDigital from a "hold" rating to a "strong-buy" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the stock. Based on data from MarketBeat.com, InterDigital presently has an average rating of "Buy" and a consensus price target of $416.67.

Trending Headlines about InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company’s first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million–$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85–$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million–$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance?
• Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration.
• Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs

InterDigital Stock Performance

IDCC opened at $304.83 on Monday. InterDigital, Inc. has a 1-year low of $247.66 and a 1-year high of $412.60. The company has a market cap of $7.87 billion, a price-to-earnings ratio of 35.16 and a beta of 1.43. 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 company's fifty day moving average price is $270.56 and its two-hundred day moving average price is $310.99.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 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 for the quarter, compared to analyst estimates of $143.10 million. During the same period last year, the company posted $6.52 earnings per share. 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, analysts expect that InterDigital, Inc. will post 7.41 EPS for the current fiscal year.

InterDigital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th were issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Wednesday, July 8th. InterDigital's dividend payout ratio (DPR) is 32.30%.

Insiders Place Their Bets

In other InterDigital news, Director John D. Jr. Markley sold 400 shares of the business's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total value of $120,000.00. Following the transaction, the director directly owned 11,735 shares in the company, valued at $3,520,500. The trade was a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Samir Armaly sold 470 shares of the business'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 $130,020.80. Following the completion of the transaction, the director owned 4,608 shares in the company, valued at approximately $1,274,757.12. The trade was a 9.26% 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. In the last quarter, insiders have sold 5,872 shares of company stock valued at $1,654,159. Company 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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