InterDigital (NASDAQ:IDCC) Hits New 1-Year High on Analyst Upgrade

Key Points

• InterDigital reached a new 52-week high of $368.59 following an upgrade from Weiss Ratings, which increased the stock rating from buy (b+) to buy (a).
• Multiple analysts have set a positive outlook for InterDigital, with Roth Capital raising its price target from $270 to $350, and an average price target of $345 across analysts.
• The company recently increased its quarterly dividend from $0.60 to $0.70, reflecting a commitment to returning value to shareholders.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s share price reached a new 52-week high on Wednesday after Weiss Ratings upgraded the stock from a buy (b+) rating to a buy (a) rating. The company traded as high as $365.88 and last traded at $368.59, with a volume of 13042 shares. The stock had previously closed at $358.26.

Several other equities analysts also recently commented on the stock. Roth Capital upped their price target on shares of InterDigital from $270.00 to $350.00 and gave the company a "buy" rating in a report on Friday, September 12th. Jefferies Financial Group reissued a "hold" rating and issued a $340.00 price objective on shares of InterDigital in a research report on Monday, September 29th. Finally, William Blair reissued an "outperform" rating on shares of InterDigital in a research report on Monday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and an average price target of $345.00.

Insider Buying and Selling

In related news, CTO Rajesh Pankaj sold 1,000 shares of the stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $338.08, for a total transaction of $338,080.00. Following the completion of the sale, the chief technology officer owned 65,122 shares of the company's stock, valued at $22,016,445.76. This represents a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Joshua D. Schmidt sold 466 shares of the stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $273.12, for a total transaction of $127,273.92. Following the sale, the insider directly owned 28,370 shares of the company's stock, valued at $7,748,414.40. The trade was a 1.62% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,466 shares of company stock valued at $1,016,164 in the last three months. 2.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Twin Peaks Wealth Advisors LLC acquired a new position in InterDigital during the 2nd quarter valued at approximately $28,000. Wayfinding Financial LLC acquired a new position in InterDigital during the 1st quarter valued at approximately $32,000. Global Wealth Strategies & Associates acquired a new position in InterDigital during the 2nd quarter valued at approximately $38,000. Headlands Technologies LLC acquired a new position in InterDigital during the 1st quarter valued at approximately $35,000. Finally, Banque Transatlantique SA acquired a new position in InterDigital during the 1st quarter valued at approximately $33,000. Institutional investors and hedge funds own 99.83% of the company's stock.

InterDigital Price Performance

The firm has a market cap of $9.49 billion, a price-to-earnings ratio of 26.10, a price-to-earnings-growth ratio of 1.75 and a beta of 1.44. The stock's 50 day simple moving average is $306.54 and its 200-day simple moving average is $248.08. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.96 and a current ratio of 1.96.

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

InterDigital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Wednesday, October 8th will be paid a $0.70 dividend. The ex-dividend date is Wednesday, October 8th. This is an increase from InterDigital's previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. InterDigital's dividend payout ratio (DPR) is currently 19.96%.

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.

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