InterDigital, Inc. $IDCC Stock: Reinhart Partners LLC. Cuts Stake

Key Points

• Reinhart Partners trimmed its InterDigital stake by 0.7% in the third quarter, selling 3,334 shares and retaining 457,070 shares valued at approximately $149 million. Institutional investors collectively own 99.83% of IDCC.
• Analysts maintain a bullish outlook, with a consensus “Buy” rating and a $450 price target. InterDigital recently reported quarterly earnings of $4.62 per share, far above the $0.90 consensus estimate.
• InterDigital raised its quarterly dividend from $0.70 to $0.75 per share, equivalent to $3.00 annually and a 0.9% yield. The stock recently traded at $331.31, compared with a 12-month range of $249.14 to $412.60.

Reinhart Partners LLC. lowered its position in InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 0.7% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 457,070 shares of the Wireless communications provider's stock after selling 3,334 shares during the quarter. InterDigital comprises 3.6% of Reinhart Partners LLC.'s investment portfolio, making the stock its 9th largest holding. Reinhart Partners LLC. owned approximately 1.77% of InterDigital worth $149,037,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in IDCC. Congress Asset Management Co. boosted its position in InterDigital by 8.7% during the third quarter. Congress Asset Management Co. now owns 458,053 shares of the Wireless communications provider's stock worth $149,357,000 after purchasing an additional 36,620 shares during the period. Bank of America Corp DE raised its position in shares of InterDigital by 31.3% in the first quarter. Bank of America Corp DE now owns 266,724 shares of the Wireless communications provider's stock valued at $80,551,000 after purchasing an additional 63,524 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of InterDigital by 135.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 219,388 shares of the Wireless communications provider's stock valued at $66,255,000 after buying an additional 126,328 shares in the last quarter. Royal Bank of Canada boosted its holdings in InterDigital by 375.7% in the 1st quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider's stock worth $60,297,000 after buying an additional 157,687 shares during the period. Finally, Wellington Management Group LLP boosted its holdings in InterDigital by 34.8% in the 2nd quarter. Wellington Management Group LLP now owns 165,631 shares of the Wireless communications provider's stock worth $46,895,000 after buying an additional 42,760 shares during the period. 99.83% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

IDCC has been the topic of a number of analyst reports. Weiss Ratings raised shares of InterDigital from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday. Zacks Research upgraded InterDigital from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $450.00.

InterDigital Stock Performance

Shares of IDCC opened at $331.31 on Friday. InterDigital, Inc. has a 12-month low of $249.14 and a 12-month high of $412.60. 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 has a market cap of $8.55 billion, a PE ratio of 38.21 and a beta of 1.43. The stock has a 50-day moving average price of $335.17 and a 200-day moving average price of $306.55.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping the consensus estimate of $0.90 by $3.72. The company had revenue of $260.17 million for the quarter, compared to analysts' expectations of $143.10 million. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. InterDigital's revenue for the quarter was down 13.4% compared to the same quarter last year. During the same period in the prior year, the business 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. As a group, equities analysts forecast that InterDigital, Inc. will post 9.52 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 28th. Stockholders of record on Wednesday, October 14th will be given a dividend of $0.75 per share. This is an increase from InterDigital's previous quarterly dividend of $0.70. The ex-dividend date is Wednesday, October 14th. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. InterDigital's dividend payout ratio is 34.60%.

Insiders Place Their Bets

In related news, Director Joan H. Gillman sold 300 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $331.06, for a total value of $99,318.00. Following the transaction, the director owned 22,736 shares of the company's stock, valued at $7,526,980.16. This represents a 1.30% 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, CTO Rajesh Pankaj sold 1,500 shares of the firm's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $334.32, for a total value of $501,480.00. Following the sale, the chief technology officer owned 63,516 shares in the company, valued at $21,234,669.12. The trade was a 2.31% 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. Insiders have sold a total of 4,800 shares of company stock valued at $1,595,118 over the last ninety days. 3.50% of the stock is currently owned by insiders.

About InterDigital

InterDigital, Inc is a research and development company that designs and develops advanced wireless, video and related technologies. Its work supports cellular communications, including 2G, 3G, 4G and 5G networks, as well as Wi-Fi, video coding, artificial intelligence and other connected-device applications. The company's technologies are incorporated into mobile phones, network equipment, consumer electronics and other wireless products.

InterDigital primarily commercializes its innovations through a patent-licensing business.

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