Prospect Capital Advisors LLC Sells 6,690 Shares of InterDigital, Inc. $IDCC

Key Points

• Prospect Capital Advisors reduced its InterDigital stake by 23.8%, selling 6,690 shares and retaining 21,420 shares valued at approximately $6.47 million. Institutional investors collectively own 99.83% of IDCC.
• InterDigital reported a major quarterly earnings beat, with EPS of $4.62 versus the $0.90 consensus and revenue of $260.2 million versus $143.1 million expected. Management also raised its 2026 revenue and EPS guidance, supported by stronger recurring licensing revenue and expansion into streaming, cloud, AI, IoT and automotive markets.
• Analysts maintain a generally bullish view, with a consensus “Buy” rating and a $416.67 price target, while investors should note year-over-year revenue declines, insider selling and licensing-related uncertainties. The company also pays a quarterly dividend of $0.70 per share, yielding approximately 0.9%.

Prospect Capital Advisors LLC lessened its holdings in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 23.8% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 21,420 shares of the Wireless communications provider's stock after selling 6,690 shares during the quarter. InterDigital makes up 3.6% of Prospect Capital Advisors LLC's portfolio, making the stock its 12th biggest position. Prospect Capital Advisors LLC owned 0.08% of InterDigital worth $6,469,000 as of its most recent SEC filing.

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

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on IDCC. Zacks Research upgraded shares of InterDigital from a "hold" rating to a "strong-buy" rating in a report on Thursday. Weiss Ratings cut InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $416.67.

InterDigital Price Performance

Shares of IDCC stock opened at $304.83 on Friday. The company has a market capitalization of $7.88 billion, a P/E ratio of 35.16 and a beta of 1.42. The company's 50-day simple moving average is $270.56 and its two-hundred day simple moving average is $311.00. InterDigital, Inc. has a one year low of $247.66 and a one year high of $412.60. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.74 and a quick ratio of 1.88.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating the consensus estimate of $0.90 by $3.72. The firm had revenue of $260.17 million during the quarter, compared to the consensus estimate of $143.10 million. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The company's revenue was down 13.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $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 anticipate that InterDigital, Inc. will post 7.41 EPS for the current year.

InterDigital Announces Dividend

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

InterDigital News Roundup

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

Insider Transactions at InterDigital

In related news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $286.00, for a total transaction of $429,000.00. Following the transaction, the chief technology officer directly owned 67,976 shares of the company's stock, valued at $19,441,136. This represents a 2.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $276.64, for a total value of $144,406.08. Following the completion of the sale, the director owned 7,620 shares of the company's stock, valued at approximately $2,107,996.80. This trade represents a 6.41% 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 sold 5,872 shares of company stock worth $1,654,159. Company insiders own 3.50% of the company's stock.

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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