InterDigital, Inc. (NASDAQ:IDCC) Raises Dividend to $0.70 Per Share

Key Points

• InterDigital, Inc. has announced a quarterly dividend increase to $0.70 per share, up 16.7% from the previous $0.60 dividend.
• The company has a payout ratio of 36.3%, indicating that its dividend is well-supported by earnings.
• Analysts have upgraded InterDigital's price target to $350.00, maintaining a consensus "Buy" rating based on recent positive earnings performance.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) declared a quarterly dividend on Wednesday, September 17th, RTT News reports. Stockholders of record on Wednesday, October 8th will be paid a dividend of 0.70 per share by the Wireless communications provider on Wednesday, October 22nd. This represents a c) annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, October 8th. This is a 16.7% increase from InterDigital's previous quarterly dividend of $0.60.

InterDigital has a payout ratio of 36.3% meaning its dividend is sufficiently covered by earnings. Analysts expect InterDigital to earn $6.86 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 35.0%.

InterDigital Stock Performance

Shares of IDCC stock traded down $4.40 on Friday, hitting $334.81. The company had a trading volume of 768,534 shares, compared to its average volume of 327,921. The firm has a market cap of $8.64 billion, a P/E ratio of 23.86, a price-to-earnings-growth ratio of 1.63 and a beta of 1.42. The company has a 50-day moving average price of $266.57 and a 200-day moving average price of $231.58. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.02. InterDigital has a twelve month low of $136.58 and a twelve month high of $341.47.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share for the quarter, beating the consensus estimate of $2.77 by $3.75. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The firm had revenue of $300.60 million during the quarter, compared to analyst estimates of $167.93 million. During the same quarter in the previous year, the business earned $4.57 EPS. InterDigital's revenue for the quarter was up 34.5% compared to the same quarter last year. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. As a group, equities research analysts predict that InterDigital will post 9.21 earnings per share for the current fiscal year.

Insider Activity at InterDigital

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of the business's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $289.78, for a total transaction of $289,780.00. Following the completion of the sale, the chief technology officer directly owned 66,122 shares in the company, valued at approximately $19,160,833.16. The trade was a 1.49% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Joshua D. Schmidt sold 466 shares of the business's stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $273.12, for a total value of $127,273.92. Following the transaction, the insider owned 28,370 shares in the company, valued at approximately $7,748,414.40. This represents a 1.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,932 shares of company stock valued at $1,010,930. 2.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Twin Peaks Wealth Advisors LLC acquired a new position in InterDigital in the second quarter valued at approximately $28,000. Elequin Capital LP acquired a new position in shares of InterDigital in the 4th quarter valued at $29,000. Wayfinding Financial LLC acquired a new position in shares of InterDigital in the 1st quarter valued at $32,000. Global Wealth Strategies & Associates acquired a new position in shares of InterDigital in the 2nd quarter valued at $38,000. Finally, Headlands Technologies LLC acquired a new position in shares of InterDigital in the 1st quarter valued at $35,000. 99.83% of the stock is currently owned by institutional investors and hedge funds.

InterDigital Company Profile

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.