InterDigital, Inc. (NASDAQ:IDCC) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts are constructive on InterDigital: The stock has an average rating of “Moderate Buy” from five analysts, with four Buy ratings and one Hold. The consensus 12-month price target is about $416.67.
• InterDigital beat Q1 earnings estimates: The company reported $2.57 EPS versus the expected $2.54 and revenue of $205.42 million, topping estimates. It also issued guidance for Q2 2026 and FY 2026, while analysts currently expect $7.41 EPS for the full fiscal year.
• Dividend and insider activity were notable: InterDigital declared a quarterly dividend of $0.70 per share, or $2.80 annualized, yielding about 1.1%. Meanwhile, insiders sold shares recently, including CTO Rajesh Pankaj and Director Derek K. Aberle, though institutional ownership remains very high at 99.83%.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) have been given an average recommendation of "Moderate Buy" by the five analysts that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $416.6667.

Separately, Weiss Ratings cut InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, June 12th.

Insider Buying and Selling

In related news, CTO Rajesh Pankaj sold 1,500 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $286.00, for a total value of $429,000.00. Following the completion of the transaction, the chief technology officer owned 67,976 shares of the company's stock, valued at $19,441,136. This represents a 2.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of the 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 completion of the transaction, the director directly owned 7,620 shares of the company's stock, valued at approximately $2,107,996.80. The trade was 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 a total of 5,872 shares of company stock worth $1,654,159 in the last quarter. Corporate insiders own 3.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IDCC. Price T Rowe Associates Inc. MD boosted its holdings in shares of InterDigital by 62.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock valued at $707,477,000 after acquiring an additional 854,845 shares in the last quarter. Geode Capital Management LLC grew its position in InterDigital by 18.6% during the 4th 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 last quarter. Reinhart Partners LLC. increased its holdings in InterDigital by 9.0% in the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock worth $130,359,000 after purchasing an additional 38,115 shares in the last quarter. Invesco Ltd. increased its holdings in InterDigital by 24.8% in the 4th quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider's stock worth $143,546,000 after purchasing an additional 89,647 shares in the last quarter. Finally, Norges Bank bought a new position in InterDigital in the fourth quarter valued at about $128,918,000. 99.83% of the stock is currently owned by institutional investors and hedge funds.

InterDigital Stock Down 0.9%

NASDAQ IDCC opened at $258.18 on Tuesday. The business has a fifty day moving average price of $269.88 and a two-hundred day moving average price of $313.94. The stock has a market capitalization of $6.67 billion, a PE ratio of 24.31 and a beta of 1.42. InterDigital has a fifty-two week low of $213.06 and a fifty-two week high of $412.60. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.88 and a quick ratio of 1.88.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued 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. InterDigital had a return on equity of 35.25% and a net margin of 44.20%.The company had revenue of $205.42 million for the quarter, compared to analyst estimates of $196.85 million. During the same quarter last year, the company posted $3.45 EPS. The company's revenue for the quarter was down 2.4% compared to the same quarter last year. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS. Equities analysts expect that InterDigital will post 7.41 earnings per share for the current fiscal year.

InterDigital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Wednesday, July 8th. InterDigital's dividend payout ratio (DPR) is presently 26.37%.

InterDigital Company Profile

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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