InterDigital (NASDAQ:IDCC) Reaches New 1-Year High After Analyst Upgrade

Key Points

• InterDigital's stock reached a new 52-week high of $330.34 following an analyst upgrade from Roth Capital, which raised its price target from $270.00 to $350.00 while maintaining a buy rating.
• Insiders, including CTO Rajesh Pankaj, have sold a total of 3,932 shares worth over $1 million in the last 90 days, indicating a slight decrease in their ownership stakes.
• The company reported impressive quarterly earnings, with a net revenue of $300.60 million, significantly beating the estimated $167.93 million and demonstrating a year-over-year revenue increase of 34.5%.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) hit a new 52-week high during trading on Monday after Roth Capital raised their price target on the stock from $270.00 to $350.00. Roth Capital currently has a buy rating on the stock. InterDigital traded as high as $330.34 and last traded at $330.26, with a volume of 51503 shares trading hands. The stock had previously closed at $322.87.

Insider Activity

In other news, CTO Rajesh Pankaj sold 1,000 shares of the stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $261.03, for a total value of $261,030.00. Following the transaction, the chief technology officer directly owned 67,122 shares of the company's stock, valued at $17,520,855.66. This represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joshua D. Schmidt sold 466 shares of the stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $273.12, for a total transaction of $127,273.92. Following the completion of the transaction, the insider directly owned 28,370 shares in the company, valued at $7,748,414.40. The trade was a 1.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 3,932 shares of company stock worth $1,010,930 over the last three months. Insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On InterDigital

Several large investors have recently modified their holdings of the stock. Twin Peaks Wealth Advisors LLC bought a new position in InterDigital during the second quarter worth about $28,000. Elequin Capital LP bought a new position in InterDigital during the fourth quarter worth about $29,000. Wayfinding Financial LLC bought a new position in InterDigital during the first quarter worth about $32,000. Banque Transatlantique SA bought a new position in InterDigital during the first quarter worth about $33,000. Finally, Headlands Technologies LLC bought a new position in InterDigital during the first quarter worth about $35,000. 99.83% of the stock is owned by institutional investors.

InterDigital Trading Down 0.7%

The firm has a market capitalization of $8.69 billion, a P/E ratio of 24.02, a price-to-earnings-growth ratio of 1.63 and a beta of 1.42. The business's 50-day moving average is $266.57 and its 200 day moving average is $231.58. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.96 and a quick ratio of 1.96.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, topping analysts' consensus estimates of $2.77 by $3.75. InterDigital had a net margin of 51.92% and a return on equity of 53.44%. The business had revenue of $300.60 million for the quarter, compared to analyst estimates of $167.93 million. During the same period last year, the firm earned $4.57 earnings per share. 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, analysts anticipate that InterDigital, Inc. will post 9.21 EPS for the current fiscal year.

InterDigital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Wednesday, October 8th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Wednesday, October 8th. This represents a $2.80 annualized dividend and a yield of 0.8%. This is an increase from InterDigital's previous quarterly dividend of $0.60. InterDigital's payout ratio is 17.11%.

About InterDigital

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.