Tidal Investments LLC Buys 12,501 Shares of InterDigital, Inc. $IDCC

Key Points

• Tidal Investments increased its InterDigital stake by 19%, purchasing 12,501 shares to reach 78,161 shares valued at approximately $22.1 million. Institutional investors now 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 $260.17 million versus $143.10 million expected. However, revenue declined 13.4% year over year.
• The company raised its quarterly dividend 7.1% to $0.75 per share, while analysts maintain a consensus “Buy” rating and a $416.67 price target. The stock trades at roughly 40 times earnings, reflecting elevated valuation risk.

Tidal Investments LLC lifted its position in InterDigital, Inc. (NASDAQ:IDCC - Free Report) by 19.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 78,161 shares of the Wireless communications provider's stock after acquiring an additional 12,501 shares during the quarter. Tidal Investments LLC owned 0.30% of InterDigital worth $22,130,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in IDCC. California State Teachers Retirement System lifted its position in shares of InterDigital by 27,779.5% during the second quarter. California State Teachers Retirement System now owns 8,412,642 shares of the Wireless communications provider's stock worth $2,381,871,000 after purchasing an additional 8,382,467 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in InterDigital by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock worth $707,477,000 after buying an additional 854,845 shares during the period. Geode Capital Management LLC increased its position in shares of InterDigital by 18.6% during the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock worth $251,250,000 after acquiring an additional 123,686 shares during the period. Reinhart Partners LLC. raised its stake in shares of InterDigital by 9.0% during the second quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock valued at $130,359,000 after acquiring an additional 38,115 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of InterDigital by 24.8% during the fourth quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider's stock valued at $143,546,000 after acquiring an additional 89,647 shares in the last quarter. 99.83% of the stock is currently owned by institutional investors.

Key Stories Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Dividend raised 7.1%: InterDigital increased its quarterly cash dividend from $0.70 to $0.75 per share, equivalent to $3.00 annually and an approximately 0.9% yield. The dividend is payable October 28 to shareholders of record October 14. The increase signals confidence in cash generation and enhances shareholder returns. InterDigital Declares Increase in Quarterly Cash Dividend
• Positive Sentiment: Analyst sentiment remains favorable: Brokerages maintain an average “Buy” rating, with a reported average price target of $416.67. Ratings include one Strong Buy, three Buys and one Hold, suggesting analysts see further upside despite the stock’s elevated valuation.
• Positive Sentiment: Fundamentals offer support: InterDigital recently reported quarterly EPS of $4.62 versus the $0.90 consensus estimate and revenue of $260.17 million versus expectations of $143.10 million. Management’s fiscal 2026 EPS guidance is $10.85–$12.81, while the company has minimal debt and a 32.3% dividend payout ratio.
• Neutral Sentiment: Short-interest data is not meaningful: The report lists short interest at zero shares and a 0.0-day short-interest ratio, while also describing a “significant increase” and calculating an undefined percentage. The inconsistent figures provide no reliable indication of short-covering or bearish positioning.
• Negative Sentiment: CTO sold shares: Chief Technology Officer Rajesh Pankaj sold 1,500 shares for approximately $507,000 at an average price of $338. The transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but it adds to a broader pattern of insider selling and no reported insider purchases in the past six months. Rajesh Pankaj Sells 1,500 Shares of InterDigital Stock
• Negative Sentiment: Revenue trend remains weaker: Despite the earnings beat, quarterly revenue declined 13.4% year over year, and the stock trades at roughly 40 times earnings. This leaves IDCC more sensitive to any slowdown in licensing revenue or disappointment relative to its guidance.

InterDigital Stock Up 2.1%

Shares of IDCC stock opened at $346.44 on Friday. The stock's fifty day moving average price is $308.92 and its 200 day moving average price is $310.67. InterDigital, Inc. has a 1-year low of $249.14 and a 1-year high of $412.60. The company has a market cap of $8.94 billion, a price-to-earnings ratio of 39.96 and a beta of 1.43. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74.

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 (EPS) for the quarter, topping analysts' consensus estimates of $0.90 by $3.72. The business had revenue of $260.17 million during 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%. The business's quarterly revenue was down 13.4% on a year-over-year basis. During the same quarter last year, the company 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. On average, research analysts expect that InterDigital, Inc. will post 9.76 earnings per share for the current fiscal year.

InterDigital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be paid a $0.75 dividend. The ex-dividend date is Wednesday, October 14th. This is a positive change from InterDigital's previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.9%. InterDigital's dividend payout ratio (DPR) is currently 32.30%.

Analysts Set New Price Targets

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

Insider Buying and Selling

In other news, Director John D. Jr. Markley sold 400 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $300.00, for a total value of $120,000.00. Following the completion of the sale, the director directly owned 11,735 shares in the company, valued at $3,520,500. The trade was a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the business's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $338.00, for a total transaction of $507,000.00. Following the completion of the sale, the chief technology officer directly owned 65,016 shares of the company's stock, valued at approximately $21,975,408. The trade was a 2.26% 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 5,200 shares of company stock valued at $1,642,638 over the last ninety days. Company insiders own 3.50% of the company's stock.

InterDigital Company Profile

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.

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