State of Michigan Retirement System Buys New Stake in InterDigital, Inc. $IDCC

Key Points

• State of Michigan Retirement System opened a new position in InterDigital during the first quarter, buying 6,200 shares worth about $1.87 million.
• InterDigital reported better-than-expected Q1 earnings, with EPS of $2.57 versus estimates of $2.54 and revenue of $205.42 million versus estimates of $196.85 million, though revenue still fell 2.4% year over year.
• The company declared a quarterly dividend of $0.70 per share and maintained a moderate buy analyst view, with a consensus price target of $416.67.

State of Michigan Retirement System purchased a new stake in InterDigital, Inc. (NASDAQ:IDCC - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 6,200 shares of the Wireless communications provider's stock, valued at approximately $1,872,000.

Other large investors also recently bought and sold shares of the company. Kemnay Advisory Services Inc. purchased a new position in shares of InterDigital during the fourth quarter worth about $26,000. Anchor Investment Management LLC purchased a new stake in shares of InterDigital in the 1st quarter valued at about $30,000. Leonteq Securities AG purchased a new stake in shares of InterDigital in the 4th quarter valued at about $35,000. Financial Consulate Inc. acquired a new stake in shares of InterDigital in the 4th quarter valued at about $41,000. Finally, Hantz Financial Services Inc. grew its stake in InterDigital by 219.0% during the 4th quarter. Hantz Financial Services Inc. now owns 134 shares of the Wireless communications provider's stock worth $43,000 after buying an additional 92 shares during the last quarter. Institutional investors and hedge funds own 99.83% of the company's stock.

InterDigital Stock Down 1.9%

IDCC opened at $260.45 on Friday. InterDigital, Inc. has a 52 week low of $213.06 and a 52 week high of $412.60. The business has a 50 day moving average price of $270.11 and a two-hundred day moving average price of $314.52. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.01. The company has a market cap of $6.73 billion, a PE ratio of 24.52 and a beta of 1.42.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.54 by $0.03. The company had revenue of $205.42 million for the quarter, compared to the consensus estimate of $196.85 million. InterDigital had a return on equity of 35.25% and a net margin of 44.20%.The company's revenue was down 2.4% on a year-over-year basis. During the same period last year, the business posted $3.45 EPS. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS. As a group, research analysts anticipate that InterDigital, Inc. will post 7.41 EPS for the current year.

InterDigital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Wednesday, July 8th. InterDigital's dividend payout ratio (DPR) is 26.37%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, June 12th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $416.67.

Insider Buying and Selling

In other news, Director Derek K. Aberle sold 522 shares of the firm's stock in a transaction on 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 in the company, valued at approximately $2,107,996.80. This trade represents a 6.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total transaction of $120,000.00. Following the completion of the sale, the director directly owned 11,735 shares in the company, valued at approximately $3,520,500. The trade was a 3.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,872 shares of company stock worth $1,654,159 in the last ninety days. Insiders own 3.50% of the company's stock.

InterDigital Profile

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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