InterDigital, Inc. $IDCC Shares Acquired by Reinhart Partners LLC.

Key Points

• Reinhart Partners increased its InterDigital stake by 9.0% in the second quarter to 460,404 shares, valued at approximately $130.4 million. Institutional investors collectively own 99.83% of the company.
• InterDigital shares were trading up 4.9% at $344.56, while the company reported quarterly EPS of $4.62—well above the $0.90 consensus estimate—on revenue of $260.17 million.
• The company maintains a quarterly dividend of $0.70, equal to an annualized $2.80 payout and a 0.8% yield. Analysts have a consensus “Buy” rating with an average price target of $416.67.

Reinhart Partners LLC. grew its stake in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 9.0% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 460,404 shares of the Wireless communications provider's stock after acquiring an additional 38,115 shares during the quarter. InterDigital comprises approximately 3.0% of Reinhart Partners LLC.'s investment portfolio, making the stock its 11th largest holding. Reinhart Partners LLC. owned about 1.78% of InterDigital worth $130,359,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Pictet Asset Management Holding SA lifted its stake in shares of InterDigital by 293.5% during the fourth quarter. Pictet Asset Management Holding SA now owns 14,098 shares of the Wireless communications provider's stock worth $4,489,000 after buying an additional 10,515 shares during the period. NewEdge Wealth LLC increased its position in shares of InterDigital by 68.4% in the 1st quarter. NewEdge Wealth LLC now owns 13,783 shares of the Wireless communications provider's stock valued at $4,163,000 after acquiring an additional 5,599 shares during the period. Principal Financial Group Inc. raised its stake in InterDigital by 4.6% in the 4th quarter. Principal Financial Group Inc. now owns 146,320 shares of the Wireless communications provider's stock worth $46,585,000 after acquiring an additional 6,494 shares during the last quarter. PFA Pension Forsikringsaktieselskab purchased a new position in InterDigital in the 4th quarter worth $1,852,000. Finally, Intech Investment Management LLC lifted its position in InterDigital by 39.9% during the 4th quarter. Intech Investment Management LLC now owns 25,678 shares of the Wireless communications provider's stock worth $8,175,000 after acquiring an additional 7,319 shares during the period. 99.83% of the stock is owned by hedge funds and other institutional investors.

InterDigital Trading Up 4.9%

Shares of InterDigital stock opened at $344.56 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74. The firm has a fifty day moving average price of $277.69 and a 200 day moving average price of $311.54. InterDigital, Inc. has a 1 year low of $249.14 and a 1 year high of $412.60. The stock has a market cap of $8.89 billion, a PE ratio of 39.74 and a beta of 1.43.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating the consensus estimate of $0.90 by $3.72. The company had revenue of $260.17 million for the quarter, compared to analyst estimates of $143.10 million. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The firm's revenue was down 13.4% on a year-over-year basis. During the same period in the prior year, the company earned $6.52 earnings per share. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Equities research analysts predict that InterDigital, Inc. will post 7.41 earnings per share for the current year.

InterDigital Announces Dividend

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

Insider Transactions at InterDigital

In related news, CTO Rajesh Pankaj sold 1,500 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $324.88, for a total transaction of $487,320.00. Following the sale, the chief technology officer directly owned 66,516 shares of the company's stock, valued at $21,609,718.08. This trade represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 InterDigital stock in a transaction that occurred on 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 owned 11,735 shares of the company's stock, valued at approximately $3,520,500. This 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. Over the last ninety days, insiders have sold 7,372 shares of company stock valued at $2,141,479. 3.50% of the stock is owned by insiders.

Analysts Set New Price Targets

IDCC has been the topic of a number of research reports. Weiss Ratings lowered InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, June 12th. Zacks Research raised 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 and four have issued a Buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $416.67.

About InterDigital

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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