InterDigital (NASDAQ:IDCC) Hits New 52-Week High - Time to Buy?

Key Points

• InterDigital's stock reached a new 52-week high of $245.47, reflecting a significant increase of 13.0% in trading volume of 121,478 shares.
• The company announced a quarterly dividend of $0.60, leading to an annual yield of 0.96%, with a payout ratio of 19.03%.
• Recent insider trading activity included the sale of shares by Director John A. Kritzmacher, decreasing his ownership by 2.56%, while institutional investors, holding 99.83% of the stock, have been actively increasing their positions.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) hit a new 52-week high during trading on Wednesday . The stock traded as high as $245.44 and last traded at $245.47, with a volume of 121478 shares. The stock had previously closed at $221.35.

InterDigital Stock Down 2.1%

The firm has a fifty day moving average price of $225.71 and a 200 day moving average price of $210.98. The company has a quick ratio of 1.76, a current ratio of 1.96 and a debt-to-equity ratio of 0.07. The company has a market cap of $6.56 billion, a P/E ratio of 18.02, a PEG ratio of 1.57 and a beta of 1.37.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, topping the consensus estimate of $2.77 by $3.75. The company had revenue of $300.60 million for the quarter, compared to analysts' expectations of $167.93 million. InterDigital had a return on equity of 53.44% and a net margin of 51.92%. The business's revenue for the quarter was up 34.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.57 earnings per share. Equities research analysts forecast that InterDigital, Inc. will post 9.21 earnings per share for the current year.

InterDigital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 23rd. Stockholders of record on Wednesday, July 9th were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Wednesday, July 9th. InterDigital's dividend payout ratio is presently 17.11%.

Insider Activity at InterDigital

In other news, Director Samir Armaly sold 779 shares of the stock in a transaction on Monday, June 9th. The stock was sold at an average price of $226.52, for a total transaction of $176,459.08. Following the sale, the director owned 3,128 shares in the company, valued at approximately $708,554.56. This represents a 19.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John A. Kritzmacher sold 519 shares of the company's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $226.65, for a total value of $117,631.35. Following the transaction, the director directly owned 19,774 shares in the company, valued at $4,481,777.10. This trade represents a 2.56% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 4,062 shares of company stock valued at $920,853. 2.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On InterDigital

Several large investors have recently made changes to their positions in IDCC. GAMMA Investing LLC lifted its stake in shares of InterDigital by 31,724.6% during the first quarter. GAMMA Investing LLC now owns 299,788 shares of the Wireless communications provider's stock valued at $619,810,000 after acquiring an additional 298,846 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in shares of InterDigital by 1,451.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 299,326 shares of the Wireless communications provider's stock valued at $57,986,000 after acquiring an additional 280,030 shares during the period. New Vernon Capital Holdings II LLC lifted its stake in shares of InterDigital by 25,257.5% during the first quarter. New Vernon Capital Holdings II LLC now owns 204,889 shares of the Wireless communications provider's stock valued at $42,361,000 after acquiring an additional 204,081 shares during the period. Millennium Management LLC lifted its stake in InterDigital by 3,962.5% in the fourth quarter. Millennium Management LLC now owns 128,780 shares of the Wireless communications provider's stock valued at $24,947,000 after buying an additional 125,610 shares during the period. Finally, Bessemer Group Inc. lifted its stake in InterDigital by 152,729.3% in the first quarter. Bessemer Group Inc. now owns 114,622 shares of the Wireless communications provider's stock valued at $23,700,000 after buying an additional 114,547 shares during the period. Institutional investors and hedge funds own 99.83% of the company's stock.

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.