InterDigital (NASDAQ:IDCC) Stock Price Down 7% - Time to Sell?

Key Points

• Shares fell about 7% to $328.07 on Thursday on very light trading, with roughly 42,121 shares traded versus an average daily volume of 358,293.
• Analysts hold a consensus of "Moderate Buy" for IDCC (four Buys, one Hold) with an average price target of $416.67, implying notable upside from current levels.
• The company beat EPS expectations ($2.12 vs. $1.65) but revenue dropped 37.4% year‑over‑year to $158.2M, and management set Q1 2026 guidance of $2.39–$2.68 EPS.

Shares of InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) were down 7% during trading on Thursday . The stock traded as low as $316.50 and last traded at $328.07. Approximately 42,121 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 358,293 shares. The stock had previously closed at $352.68.

Analyst Ratings Changes

Several analysts recently commented on IDCC shares. Jefferies Financial Group reiterated a "buy" rating on shares of InterDigital in a research report on Wednesday, March 18th. Roth Mkm restated a "buy" rating on shares of InterDigital in a research report on Tuesday, January 20th. Finally, Wall Street Zen upgraded shares of InterDigital from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $416.67.

InterDigital Price Performance

The company's 50-day moving average is $348.27 and its 200-day moving average is $347.07. The firm has a market capitalization of $7.77 billion, a price-to-earnings ratio of 25.31 and a beta of 1.66. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.84 and a quick ratio of 1.84.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its earnings results on Thursday, February 5th. The Wireless communications provider reported $2.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.65 by $0.47. InterDigital had a return on equity of 41.09% and a net margin of 48.76%.The business had revenue of $158.23 million during the quarter, compared to analyst estimates of $155.57 million. During the same quarter last year, the firm earned $5.15 earnings per share. The company's revenue for the quarter was down 37.4% compared to the same quarter last year. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS. On average, research analysts expect that InterDigital, Inc. will post 7.71 earnings per share for the current year.

InterDigital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 8th were issued a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, April 8th. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. InterDigital's dividend payout ratio is 23.47%.

Insider Activity

In related news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $313.30, for a total value of $469,950.00. Following the completion of the sale, the chief technology officer owned 72,449 shares of the company's stock, valued at $22,698,271.70. This represents a 2.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 325 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $352.24, for a total transaction of $114,478.00. Following the sale, the director owned 22,036 shares in the company, valued at $7,761,960.64. This trade represents a 1.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 18,997 shares of company stock worth $6,672,454 over the last 90 days. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On InterDigital

Several large investors have recently made changes to their positions in the business. Kemnay Advisory Services Inc. bought a new stake in shares of InterDigital in the 4th quarter worth approximately $26,000. Root Financial Partners LLC bought a new stake in InterDigital during the third quarter worth approximately $30,000. Aster Capital Management DIFC Ltd grew its position in InterDigital by 186.8% in the third quarter. Aster Capital Management DIFC Ltd now owns 109 shares of the Wireless communications provider's stock worth $38,000 after buying an additional 71 shares during the last quarter. Leonteq Securities AG bought a new position in shares of InterDigital in the fourth quarter valued at $35,000. Finally, Financial Consulate Inc. acquired a new stake in shares of InterDigital during the 4th quarter valued at $41,000. Institutional investors own 99.83% of the company's stock.

InterDigital Company Profile

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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