Oak Ridge Investments LLC Acquires New Position in InterDigital, Inc. $IDCC

Key Points

• Oak Ridge Investments LLC has acquired a new stake in InterDigital, Inc. valued at approximately $1.8 million during the second quarter.
• InterDigital announced a quarterly dividend of $0.70, up from the previous $0.60, indicating a growing commitment to returning value to shareholders.
• Research analysts have mostly rated InterDigital as a "Moderate Buy," with a consensus target price of $345.00 for the stock.

Oak Ridge Investments LLC acquired a new stake in InterDigital, Inc. (NASDAQ:IDCC - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 8,103 shares of the Wireless communications provider's stock, valued at approximately $1,817,000.

A number of other hedge funds have also recently modified their holdings of IDCC. GAMMA Investing LLC grew its holdings in shares of InterDigital by 53.9% in the first quarter. GAMMA Investing LLC now owns 1,450 shares of the Wireless communications provider's stock valued at $300,000 after purchasing an additional 508 shares during the period. Wealth Enhancement Advisory Services LLC lifted its position in InterDigital by 7.6% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 4,489 shares of the Wireless communications provider's stock valued at $928,000 after buying an additional 316 shares during the last quarter. Ritholtz Wealth Management lifted its position in InterDigital by 10.4% in the first quarter. Ritholtz Wealth Management now owns 30,393 shares of the Wireless communications provider's stock valued at $6,284,000 after buying an additional 2,866 shares during the last quarter. Exchange Traded Concepts LLC acquired a new position in InterDigital in the first quarter valued at about $1,815,000. Finally, D Orazio & Associates Inc. acquired a new position in InterDigital in the first quarter valued at about $206,000. Hedge funds and other institutional investors own 99.83% of the company's stock.

Analyst Ratings Changes

A number of research analysts have commented on IDCC shares. Jefferies Financial Group reaffirmed a "hold" rating and issued a $340.00 target price on shares of InterDigital in a research report on Monday, September 29th. William Blair reaffirmed an "outperform" rating on shares of InterDigital in a research report on Monday, September 22nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of InterDigital in a research report on Saturday, September 27th. Finally, Roth Capital upped their target price on shares of InterDigital from $270.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, September 12th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $345.00.

Insider Activity at InterDigital

In related news, CTO Rajesh Pankaj sold 1,000 shares of the firm's stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $338.08, for a total value of $338,080.00. Following the sale, the chief technology officer owned 65,122 shares of the company's stock, valued at $22,016,445.76. This trade represents a 1.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joshua D. Schmidt sold 466 shares of the firm's stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $273.12, for a total transaction of $127,273.92. Following the completion of the sale, the insider directly owned 28,370 shares in the company, valued at approximately $7,748,414.40. This trade represents a 1.62% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,466 shares of company stock worth $1,016,164. 2.80% of the stock is owned by corporate insiders.

InterDigital Stock Down 2.4%

Shares of IDCC opened at $339.90 on Friday. The stock has a market capitalization of $8.77 billion, a PE ratio of 24.23, a P/E/G ratio of 1.67 and a beta of 1.44. InterDigital, Inc. has a 1 year low of $144.46 and a 1 year high of $361.56. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.96 and a current ratio of 1.96. The company's 50-day simple moving average is $303.05 and its 200-day simple moving average is $246.06.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $3.75. The business had revenue of $300.60 million for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same quarter in the prior year, the company 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. Analysts forecast that InterDigital, Inc. will post 9.21 earnings per share for the current fiscal year.

InterDigital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 0.8%. This is a positive change from InterDigital's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Wednesday, October 8th. InterDigital's dividend payout ratio is 19.96%.

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.

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