InterDigital (NASDAQ:IDCC) Reaches New 12-Month High - Here's Why

Key Points

• InterDigital's stock reached a new 52-week high at $363.22 during trading, closing at $358.27, following positive broker analyses, including a raised price target to $350.00 from Roth Capital.
• The company reported earnings of $6.52 per share for the last quarter, significantly exceeding analyst estimates, with a revenue increase of 34.5% year-over-year.
• InterDigital announced an increase in its quarterly dividend from $0.60 to $0.70 per share, reflecting a commitment to shareholder returns.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s stock price hit a new 52-week high during trading on Friday . The stock traded as high as $363.22 and last traded at $358.27, with a volume of 375 shares trading hands. The stock had previously closed at $356.10.

Wall Street Analyst Weigh In

A number of brokerages have commented on IDCC. Jefferies Financial Group reaffirmed a "hold" rating and set a $340.00 price target on shares of InterDigital in a research report on Monday. Roth Capital raised their price objective on shares of InterDigital from $270.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, September 12th. Finally, William Blair reissued an "outperform" rating on shares of InterDigital in a research note on Monday, September 22nd. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, InterDigital has a consensus rating of "Moderate Buy" and an average target price of $345.00.

InterDigital Trading Up 1.1%

The company has a market capitalization of $9.29 billion, a PE ratio of 25.60, a price-to-earnings-growth ratio of 1.71 and a beta of 1.44. The company's fifty day moving average is $290.41 and its 200-day moving average is $240.85. 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 issued 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. InterDigital had a net margin of 51.92% and a return on equity of 53.44%. The business had revenue of $300.60 million during the quarter, compared to the consensus estimate of $167.93 million. During the same quarter in the prior year, the firm posted $4.57 earnings per share. The company's revenue 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. On average, 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. Shareholders of record on Wednesday, October 8th will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, October 8th. This is an increase from InterDigital's previous quarterly dividend of $0.60. InterDigital's payout ratio is 19.96%.

Insider Buying and Selling at InterDigital

In related news, insider Joshua D. Schmidt sold 466 shares of the business's stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $273.12, for a total value of $127,273.92. Following the completion of the sale, the insider directly owned 28,370 shares in the company, valued at approximately $7,748,414.40. The trade was a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Rajesh Pankaj sold 1,000 shares of the business's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $289.78, for a total transaction of $289,780.00. Following the completion of the sale, the chief technology officer owned 66,122 shares of the company's stock, valued at approximately $19,160,833.16. The trade was a 1.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,466 shares of company stock valued at $902,664 in the last 90 days. Company insiders own 2.80% of the company's stock.

Institutional Trading of InterDigital

A number of institutional investors and hedge funds have recently modified their holdings of the business. Twin Peaks Wealth Advisors LLC bought a new position in shares of InterDigital during the second quarter worth about $28,000. Wayfinding Financial LLC bought a new position in shares of InterDigital during the 1st quarter valued at about $32,000. Banque Transatlantique SA bought a new position in shares of InterDigital during the 1st quarter valued at about $33,000. Headlands Technologies LLC bought a new position in shares of InterDigital during the 1st quarter valued at about $35,000. Finally, Concord Wealth Partners acquired a new position in shares of InterDigital in the first quarter worth about $37,000. 99.83% of the stock is owned by institutional investors and hedge funds.

InterDigital Company Profile

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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