IDT (NYSE:IDT) Shares Down 6.9% - Here's Why

Key Points

• IDT shares fell 6.9% to about $48 on Wednesday with trading volume down ~76% from average, reflecting market selling despite the company’s positive headline results.
• IDT raised FY2026 adjusted EBITDA guidance to $147–$149M (midpoint ≈ +12% YoY) and reported record gross profit, consolidated revenue of $320.5M (above estimates) and non‑GAAP EPS of $1.00.
• Offsetting these positives, GAAP diluted EPS was $0.84 and certain segments showed year-over-year declines, while insider sales and institutional rebalancing may be applying additional selling pressure even as the board raised the dividend ~17% and continued buybacks.

IDT Corporation (NYSE:IDT - Get Free Report)'s stock price fell 6.9% on Wednesday . The stock traded as low as $48.00 and last traded at $48.0950. 35,138 shares traded hands during trading, a decline of 76% from the average session volume of 146,432 shares. The stock had previously closed at $51.65.

Key IDT News

Here are the key news stories impacting IDT this week:

• Positive Sentiment: Company raised FY2026 adjusted EBITDA guidance to $147M–$149M (midpoint ≈ +12% YoY), signaling stronger-than-expected profitability outlook. IDT raises guidance
• Positive Sentiment: Record quarterly gross profit, improved gross margins and increased Adjusted EBITDA and non‑GAAP EPS ($1.00) driven by growth in NRS, BOSS Money and net2phone; consolidated revenue topped estimates (~$320.5M vs. consensus ~$302–305M). Earnings press release
• Positive Sentiment: Board increased the annual dividend by ~17% to $0.28 and declared a $0.07 quarterly payout—a sign of confidence and a modest cash return to shareholders. Dividend article
• Neutral Sentiment: Company continued buybacks (308K shares year‑to‑date, ~$15M) and ended the quarter with a strong cash position and no net debt—positive credit/cash profile but modest repurchase scale relative to market cap. Earnings press release
• Negative Sentiment: Earnings were mixed: GAAP diluted EPS came in at $0.84 (Quiver/others flagged this as below some street EPS references), while non‑GAAP EPS was $1.00—investors may be discounting non‑GAAP adjustments. Quiver earnings summary
• Negative Sentiment: Certain operating metrics under pressure: income from operations declined vs. prior year; Advertising & Data recurring revenue fell (~10%); Traditional Communications gross profit declined—these mix and margin headwinds temper the upbeat headlines. Segment detail
• Negative Sentiment: Insider sales and notable institutional rebalancing (some large holders reduced positions in recent quarters) may be adding selling pressure despite the company’s operational positives. Insider & institutional activity

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Wall Street Zen cut shares of IDT from a "strong-buy" rating to a "buy" rating in a report on Saturday. Weiss Ratings reissued a "hold (c+)" rating on shares of IDT in a research report on Monday, December 29th. One analyst has rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of "Hold".

IDT Stock Performance

The firm has a fifty day simple moving average of $49.90 and a 200 day simple moving average of $52.76. The company has a market capitalization of $1.23 billion, a PE ratio of 15.25 and a beta of 0.76.

IDT (NYSE:IDT - Get Free Report) last issued its earnings results on Tuesday, March 10th. The utilities provider reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.10. IDT had a return on equity of 27.12% and a net margin of 6.53%.The business had revenue of $320.52 million during the quarter, compared to analysts' expectations of $302.00 million.

IDT Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Thursday, March 19th will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 0.6%. This is a boost from IDT's previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Thursday, March 19th. IDT's payout ratio is currently 7.45%.

Insider Transactions at IDT

In other IDT news, CFO Marcelo Fischer sold 7,009 shares of the firm's stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $52.03, for a total transaction of $364,678.27. Following the transaction, the chief financial officer owned 56,863 shares of the company's stock, valued at approximately $2,958,581.89. This trade represents a 10.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last quarter, insiders have sold 8,570 shares of company stock worth $446,073. 25.41% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On IDT

Several hedge funds have recently modified their holdings of the business. Public Employees Retirement System of Ohio purchased a new position in IDT during the third quarter valued at approximately $96,000. Gabelli Funds LLC purchased a new stake in IDT during the second quarter worth $239,000. State of Tennessee Department of Treasury purchased a new stake in IDT during the fourth quarter worth $268,000. Ameriprise Financial Inc. bought a new stake in IDT during the 3rd quarter valued at $399,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of IDT by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,156 shares of the utilities provider's stock valued at $470,000 after acquiring an additional 381 shares during the period. Hedge funds and other institutional investors own 59.34% of the company's stock.

About IDT

IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories.

Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling.

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