InterDigital, Inc. (NASDAQ:IDCC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: InterDigital has an average rating of "Moderate Buy" (4 buys, 1 hold) with a 12‑month price target of about $416.67, versus a recent share price near $278, implying significant upside.
• Earnings & guidance: Q1 results beat estimates with EPS of $2.57 (vs. $2.54) and revenue of $205.4M (vs. $196.9M) despite a 2.4% YoY revenue decline; management guides Q2 2026 EPS of 1.41–1.60 and FY 2026 EPS of 8.74–11.84.
• Capital return & ownership: InterDigital pays a quarterly dividend of $0.70 (annualized $2.80, ~1.0% yield), is overwhelmingly institutionally owned (~99.83%), and has seen recent insider selling (insiders now own ~2.8%).

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) have been given an average recommendation of "Moderate Buy" by the five ratings firms that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $416.6667.

A number of research analysts recently commented on IDCC shares. Wall Street Zen upgraded InterDigital from a "sell" rating to a "hold" rating in a research note on Saturday, March 7th. Roth Mkm restated a "buy" rating on shares of InterDigital in a research note on Tuesday, January 20th. Jefferies Financial Group restated a "buy" rating on shares of InterDigital in a research note on Wednesday, March 18th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of InterDigital in a research note on Friday, May 1st.

InterDigital Stock Performance

IDCC stock opened at $278.00 on Thursday. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.01. The firm has a market cap of $7.18 billion, a P/E ratio of 26.18 and a beta of 1.50. InterDigital has a 12-month low of $205.78 and a 12-month high of $412.60. The stock's 50 day simple moving average is $344.33 and its 200 day simple moving average is $345.39.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.54 by $0.03. The business had revenue of $205.42 million for the quarter, compared to analyst estimates of $196.85 million. InterDigital had a return on equity of 35.25% and a net margin of 44.20%.The business's revenue was down 2.4% compared to the same quarter last year. During the same period in the prior year, the company 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, equities research analysts predict that InterDigital will post 7.71 EPS for the current year.

InterDigital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Investors of record on Wednesday, April 8th were paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Wednesday, April 8th. InterDigital's dividend payout ratio is presently 26.37%.

Insider Activity

In related news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $313.30, for a total transaction of $469,950.00. Following the completion of the transaction, the chief technology officer directly owned 72,449 shares in the company, valued at $22,698,271.70. This represents a 2.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 325 shares of the company's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $352.24, for a total value of $114,478.00. Following the transaction, the director owned 22,036 shares of the company's stock, valued at approximately $7,761,960.64. The trade was a 1.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 17,997 shares of company stock worth $6,346,194 over the last 90 days. Insiders own 2.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of IDCC. NewEdge Advisors LLC increased its holdings 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 valued at $809,000 after purchasing an additional 1,069 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of InterDigital by 5.6% during the first 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. increased its holdings in shares of InterDigital by 85.8% during the second 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. increased its holdings in shares of InterDigital by 12.4% during the second quarter. AXA S.A. now owns 34,283 shares of the Wireless communications provider's stock valued at $7,687,000 after purchasing an additional 3,788 shares during the period. Finally, Qube Research & Technologies Ltd increased its holdings in shares of InterDigital by 2.9% during the second quarter. Qube Research & Technologies Ltd now owns 127,983 shares of the Wireless communications provider's stock valued at $28,698,000 after purchasing an additional 3,643 shares during the period. 99.83% of the stock is owned by institutional investors and hedge funds.

About InterDigital

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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