InterDigital, Inc. (NASDAQ:IDCC) Receives Average Rating of "Buy" from Brokerages

Key Points

• InterDigital has a consensus “Buy” rating from five covering brokerages, with three buys, one strong buy and one hold. The average 12-month price target is approximately $416.67.
• The company reported quarterly EPS of $4.62, far exceeding the $0.90 consensus estimate, while revenue reached $260.17 million. However, revenue declined 13.4% year over year.
• InterDigital shares opened at $343.65, with a market capitalization of about $8.87 billion. Insiders sold $2.24 million worth of shares over the past 90 days, while institutional investors own 99.83% of the stock.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) have been assigned a consensus rating of "Buy" from the five brokerages that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $416.6667.

A number of research firms have weighed in on IDCC. Zacks Research upgraded InterDigital from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. Weiss Ratings lowered shares of InterDigital from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday.

Insider Buying and Selling

In other news, CTO Rajesh Pankaj sold 1,500 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $324.88, for a total transaction of $487,320.00. Following the transaction, the chief technology officer directly owned 66,516 shares of the company's stock, valued at approximately $21,609,718.08. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of InterDigital stock in a transaction that occurred on Friday, June 12th. The shares were 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 of the company's stock, valued at $2,107,996.80. This represents a 6.41% 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 sold 7,672 shares of company stock worth $2,240,797 over the last 90 days. Corporate insiders own 3.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of IDCC. Keating Financial Advisory Services Inc. purchased a new stake in shares of InterDigital in the 2nd quarter worth $25,000. Kemnay Advisory Services Inc. purchased a new position in shares of InterDigital during the fourth quarter valued at $26,000. Anchor Investment Management LLC purchased a new position in shares of InterDigital during the first quarter valued at $30,000. Leonteq Securities AG bought a new stake in shares of InterDigital in the fourth quarter valued at about $35,000. Finally, Hantz Financial Services Inc. lifted its stake in InterDigital by 219.0% in the fourth quarter. Hantz Financial Services Inc. now owns 134 shares of the Wireless communications provider's stock worth $43,000 after acquiring an additional 92 shares during the period. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

InterDigital Stock Down 0.1%

Shares of NASDAQ:IDCC opened at $343.65 on Friday. The firm has a market capitalization of $8.87 billion, a PE ratio of 39.64 and a beta of 1.43. The business has a 50 day simple moving average of $286.29 and a two-hundred day simple moving average of $312.22. InterDigital has a 1 year low of $249.14 and a 1 year high of $412.60. 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 issued its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping the consensus estimate 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 the consensus estimate of $143.10 million. During the same period in the prior year, the business posted $6.52 earnings per share. The company's revenue for the quarter was down 13.4% on a year-over-year basis. 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, equities analysts predict that InterDigital will post 7.41 EPS for the current year.

InterDigital Announces Dividend

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

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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