InterDigital (NASDAQ:IDCC) Sets New 12-Month High - Should You Buy?

Key Points

• InterDigital's stock price reached a new 52-week high during mid-day trading, hitting $278.06, and closed at $277.49 with significant trading volume of 298,660 shares.
• The company reported strong quarterly earnings, with an EPS of $6.52, surpassing analyst expectations by $3.75, and achieving a net margin of 51.92% along with a revenue increase of 34.5% year-over-year.
• InterDigital's recent quarterly dividend was $0.60, leading to an annualized dividend yield of 0.9%, with a low payout ratio of 17.11% indicating strong profit retention.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $278.06 and last traded at $277.49, with a volume of 298660 shares traded. The stock had previously closed at $271.71.

InterDigital Stock Performance

The stock's fifty day moving average is $245.33 and its two-hundred day moving average is $223.14. The firm has a market capitalization of $7.16 billion, a price-to-earnings ratio of 19.78, a price-to-earnings-growth ratio of 1.65 and a beta of 1.42. 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 posted its quarterly earnings data on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, beating 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 firm had revenue of $300.60 million for the quarter, compared to the consensus estimate of $167.93 million. During the same period in the prior year, the firm posted $4.57 EPS. The firm'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. Analysts forecast that InterDigital, Inc. will post 9.21 earnings per share for the current year.

InterDigital Dividend Announcement

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

Insider Buying and Selling

In other news, Director Derek K. Aberle sold 692 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $226.41, for a total value of $156,675.72. Following the transaction, the director directly owned 6,192 shares in the company, valued at approximately $1,401,930.72. This trade represents a 10.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Jean F. Rankin sold 606 shares of the firm's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $226.47, for a total transaction of $137,240.82. Following the completion of the transaction, the director owned 27,353 shares in the company, valued at approximately $6,194,633.91. The trade was a 2.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 5,528 shares of company stock worth $1,309,157. Company insiders own 2.30% of the company's stock.

Institutional Trading of InterDigital

A number of hedge funds and other institutional investors have recently made changes to their positions in IDCC. Norges Bank bought a new stake in shares of InterDigital during the 2nd quarter worth about $71,200,000. GAMMA Investing LLC raised its position in shares of InterDigital by 31,724.6% during the 1st quarter. GAMMA Investing LLC now owns 299,788 shares of the Wireless communications provider's stock worth $619,810,000 after buying an additional 298,846 shares in the last quarter. New Vernon Capital Holdings II LLC raised its position in shares of InterDigital by 25,257.5% during the 1st quarter. New Vernon Capital Holdings II LLC now owns 204,889 shares of the Wireless communications provider's stock worth $42,361,000 after buying an additional 204,081 shares in the last quarter. Millennium Management LLC raised its position in shares of InterDigital by 3,962.5% during the 4th quarter. Millennium Management LLC now owns 128,780 shares of the Wireless communications provider's stock worth $24,947,000 after buying an additional 125,610 shares in the last quarter. Finally, Bessemer Group Inc. grew its stake in shares of InterDigital by 152,729.3% in the 1st quarter. Bessemer Group Inc. now owns 114,622 shares of the Wireless communications provider's stock worth $23,700,000 after purchasing an additional 114,547 shares during the last quarter. 99.83% of the stock is currently owned by institutional investors.

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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