InterDigital (NASDAQ:IDCC) Shares Gap Up - Here's What Happened

Key Points

• InterDigital shares gapped up at the open, rising from a prior close of $253.91 to $275.00 and later trading near $289.71, on volume of 172,876 shares.
• Recent analyst coverage has been constructive, with multiple firms reiterating or upgrading ratings; the stock now carries a Moderate Buy consensus and an average price target of $416.67.
• The company recently beat earnings estimates for the quarter, reporting $2.57 EPS versus $2.54 expected, while also raising guidance for Q2 2026 and full-year 2026.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $253.91, but opened at $275.00. InterDigital shares last traded at $289.7140, with a volume of 172,876 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on IDCC. Weiss Ratings restated a "buy (b)" rating on shares of InterDigital in a research report on Friday, May 1st. Wall Street Zen upgraded shares of InterDigital from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of InterDigital in a research report on Wednesday, March 18th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, InterDigital has a consensus rating of "Moderate Buy" and a consensus price target of $416.67.

InterDigital Stock Up 10.6%

The company has a market capitalization of $7.25 billion, a PE ratio of 26.48 and a beta of 1.43. The company's 50 day moving average is $301.38 and its two-hundred day moving average is $327.05. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.01.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.54 by $0.03. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The company had revenue of $205.42 million during the quarter, compared to analysts' expectations of $196.85 million. During the same period last year, the company posted $3.45 earnings per share. InterDigital's quarterly revenue was down 2.4% on a year-over-year basis. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS. On average, analysts anticipate that InterDigital, Inc. will post 7.41 earnings per share for the current year.

InterDigital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Shareholders of record on Wednesday, April 8th were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Wednesday, April 8th. InterDigital's dividend payout ratio (DPR) is presently 26.37%.

Insiders Place Their Bets

In other InterDigital news, insider Joshua D. Schmidt sold 6,000 shares of InterDigital stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $348.21, for a total value of $2,089,260.00. Following the completion of the transaction, the insider directly owned 25,889 shares of the company's stock, valued at $9,014,808.69. This trade represents a 18.82% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Rajesh Pankaj sold 1,500 shares of InterDigital stock in a transaction on Monday, April 6th. The stock was sold at an average price of $313.30, for a total transaction of $469,950.00. Following the completion of the transaction, the chief technology officer directly owned 72,449 shares of the company's stock, valued at $22,698,271.70. The trade was a 2.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,250 shares of company stock valued at $2,752,995 over the last three months. Corporate insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On InterDigital

A number of institutional investors and hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC grew its stake in shares of InterDigital by 54.9% in the 1st quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider's stock worth $2,790,000 after buying an additional 3,274 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of InterDigital by 31.3% in the 1st quarter. Bank of America Corp DE now owns 266,724 shares of the Wireless communications provider's stock worth $80,551,000 after acquiring an additional 63,524 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of InterDigital by 58.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 397 shares of the Wireless communications provider's stock worth $120,000 after acquiring an additional 147 shares during the last quarter. California State Teachers Retirement System lifted its holdings in shares of InterDigital by 18.6% in the 1st quarter. California State Teachers Retirement System now owns 30,175 shares of the Wireless communications provider's stock worth $9,113,000 after acquiring an additional 4,737 shares during the last quarter. Finally, Royal Bank of Canada lifted its holdings in shares of InterDigital by 375.7% in the 1st quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider's stock worth $60,297,000 after acquiring an additional 157,687 shares during the last quarter. 99.83% of the stock is owned by hedge funds and other institutional investors.

About InterDigital

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company's principal services include patent licensing, technology evaluation and consulting.

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