InterDigital, Inc. $IDCC Stock Position Trimmed by Capital Management Corp VA

Key Points

• Capital Management Corp VA reduced its InterDigital stake by 4.3%, selling 5,460 shares and retaining 122,164 shares worth approximately $39.8 million. Institutional investors collectively own 99.83% of the company.
• InterDigital reported a strong quarter, with earnings of $3.11 per share versus the $1.34 consensus estimate and revenue of $193.43 million, up 17.4% year over year.
• The company raised its quarterly dividend to $0.75 per share, or $3.00 annually, while analysts maintain a “Moderate Buy” consensus and a $425 price target; however, several firms recently downgraded the stock to “Hold.”

Capital Management Corp VA lowered its position in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 4.3% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 122,164 shares of the Wireless communications provider's stock after selling 5,460 shares during the period. InterDigital makes up about 6.0% of Capital Management Corp VA's investment portfolio, making the stock its largest position. Capital Management Corp VA owned approximately 0.47% of InterDigital worth $39,834,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. Reinhart Partners LLC. boosted its position in InterDigital by 9.0% in the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock valued at $130,359,000 after buying an additional 38,115 shares during the last quarter. NewEdge Wealth LLC increased its position in shares of InterDigital by 68.4% during the first quarter. NewEdge Wealth LLC now owns 13,783 shares of the Wireless communications provider's stock worth $4,163,000 after acquiring an additional 5,599 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of InterDigital by 104.7% during the first quarter. Renaissance Technologies LLC now owns 66,098 shares of the Wireless communications provider's stock worth $19,962,000 after acquiring an additional 33,800 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of InterDigital by 54.9% in the first quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider's stock worth $2,790,000 after acquiring an additional 3,274 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its stake in shares of InterDigital by 2,027.6% in the fourth quarter. Hsbc Holdings PLC now owns 18,170 shares of the Wireless communications provider's stock worth $5,820,000 after acquiring an additional 17,316 shares in the last quarter. Hedge funds and other institutional investors own 99.83% of the company's stock.

Insider Activity at InterDigital

In related news, Director Joan Gillman sold 300 shares of the firm's stock in a transaction on Friday, August 7th. The stock was 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 in the company, valued at $7,526,980.16. This trade represents a 1.30% decrease in their ownership of the stock. The sale 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, CTO Rajesh Pankaj sold 1,500 shares of the firm's stock in a transaction on Monday, October 5th. The stock was sold at an average price of $334.32, for a total value of $501,480.00. Following the transaction, the chief technology officer owned 63,516 shares in the company, valued at $21,234,669.12. This trade represents a 2.31% 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 three months, insiders have sold 4,800 shares of company stock worth $1,595,118. Corporate insiders own 3.50% of the company's stock.

InterDigital Stock Performance

Shares of IDCC stock opened at $315.95 on Tuesday. The stock has a market capitalization of $8.15 billion, a price-to-earnings ratio of 34.80 and a beta of 1.43. InterDigital, Inc. has a one year low of $249.14 and a one year high of $400.00. The company's 50-day simple moving average is $331.18 and its 200-day simple moving average is $318.22. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.74 and a current ratio of 1.74.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The Wireless communications provider reported $3.11 earnings per share for the quarter, beating the consensus estimate of $1.34 by $1.77. InterDigital had a return on equity of 28.17% and a net margin of 38.32%. The firm had revenue of $193.43 million during the quarter, compared to analyst estimates of $152.97 million. During the same period in the previous year, the company earned $1.93 earnings per share. InterDigital's quarterly revenue was up 17.4% on a year-over-year basis. Equities analysts anticipate that InterDigital, Inc. will post 9.39 earnings per share for the current fiscal year.

InterDigital Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th were given a dividend of $0.75 per share. The ex-dividend date of this dividend was Wednesday, October 14th. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. This is an increase from InterDigital's previous quarterly dividend of $0.70. InterDigital's dividend payout ratio is currently 33.04%.

Analysts Set New Price Targets

A number of research analysts recently commented on IDCC shares. Zacks Research downgraded InterDigital from a "strong-buy" rating to a "hold" rating in a report on Monday, October 19th. Weiss Ratings downgraded InterDigital from a "buy (b)" rating to a "hold (c+)" rating in a report on Friday. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $425.00.

InterDigital Profile

InterDigital, Inc is a technology research and development company that creates advanced wireless, video and related connectivity technologies. Its work supports communications across cellular networks, including 4G and 5G, as well as Wi-Fi, the Internet of Things and other connected devices.

The company's primary business is developing intellectual property and licensing its patented technologies to manufacturers and other industry participants. Its portfolio includes innovations related to wireless communications, radio access networks, signal processing, video compression and delivery, and connected-device functionality.

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