Summit Street Capital Management LLC Takes $18.16 Million Position in InterDigital, Inc. $IDCC

Key Points

• Summit Street Capital Management purchased 64,149 InterDigital shares worth approximately $18.16 million, representing about 0.25% of the company and 2.5% of the firm’s portfolio. Institutional investors collectively own 99.83% of InterDigital.
• Analysts maintain a consensus “Buy” rating with a $416.67 price target, while InterDigital reported quarterly EPS of $4.62—well above the $0.90 estimate—and revenue of $260.17 million.
• InterDigital pays a quarterly dividend of $0.70, or $2.80 annualized, yielding approximately 0.8%. The stock opened at $344.32 and has traded between $249.14 and $412.60 over the past year.

Summit Street Capital Management LLC purchased a new stake in shares of InterDigital, Inc. (NASDAQ:IDCC - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 64,149 shares of the Wireless communications provider's stock, valued at approximately $18,163,000. InterDigital makes up approximately 2.5% of Summit Street Capital Management LLC's holdings, making the stock its 22nd biggest holding. Summit Street Capital Management LLC owned about 0.25% of InterDigital at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. NewEdge Advisors LLC lifted its position in shares of InterDigital by 37.6% during the first quarter. NewEdge Advisors LLC now owns 3,911 shares of the Wireless communications provider's stock worth $809,000 after acquiring an additional 1,069 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of InterDigital by 5.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 77,066 shares of the Wireless communications provider's stock valued at $15,933,000 after purchasing an additional 4,105 shares during the period. Russell Investments Group Ltd. raised its stake in shares of InterDigital by 85.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 6,407 shares of the Wireless communications provider's stock valued at $1,437,000 after purchasing an additional 2,958 shares during the period. AXA S.A. lifted its holdings in InterDigital by 12.4% during the 2nd quarter. AXA S.A. now owns 34,283 shares of the Wireless communications provider's stock worth $7,687,000 after purchasing an additional 3,788 shares in the last quarter. Finally, Qube Research & Technologies Ltd lifted its holdings in InterDigital by 2.9% during the 2nd quarter. Qube Research & Technologies Ltd now owns 127,983 shares of the Wireless communications provider's stock worth $28,698,000 after purchasing an additional 3,643 shares in the last quarter. 99.83% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Zacks Research raised InterDigital from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 30th. Weiss Ratings cut shares of InterDigital from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, InterDigital currently has an average rating of "Buy" and a consensus price target of $416.67.

InterDigital Price Performance

IDCC stock opened at $344.32 on Thursday. The firm's 50-day moving average price is $297.39 and its two-hundred day moving average price is $312.87. The stock has a market capitalization of $8.89 billion, a price-to-earnings ratio of 39.71 and a beta of 1.43. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. InterDigital, Inc. has a 12-month low of $249.14 and a 12-month high of $412.60.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The firm had revenue of $260.17 million for the quarter, compared to analyst estimates of $143.10 million. During the same period last year, the company earned $6.52 EPS. The business's quarterly revenue was down 13.4% compared to the same quarter last year. 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 predict that InterDigital, Inc. will post 10.22 earnings per share for the current year.

InterDigital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were issued a $0.70 dividend. The ex-dividend date was Wednesday, July 8th. This represents a $2.80 annualized dividend and a yield of 0.8%. InterDigital's dividend payout ratio (DPR) is 32.30%.

Insider Buying and Selling

In related news, Director Derek K. Aberle sold 522 shares of InterDigital stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $276.64, for a total transaction of $144,406.08. Following the sale, the director directly owned 7,620 shares in the company, valued at $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The transaction 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, Director John A. Kritzmacher sold 365 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $100,973.60. Following the sale, the director owned 16,359 shares in the company, valued at approximately $4,525,553.76. This trade represents a 2.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,672 shares of company stock worth $2,240,797 over the last quarter. Company insiders own 3.50% of the company's stock.

InterDigital Company 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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