InterDigital (NASDAQ:IDCC) Trading Up 8.2% - Time to Buy?

Key Points

• InterDigital's stock price rose by 8.2% during trading, reaching a high of $324.64, with a current trading price of $322.72, despite a significant drop in trading volume.
• The company reported impressive quarterly earnings, with an EPS of $6.52, which exceeded estimates by $3.75, and revenue of $300.60 million, indicating a 34.5% year-over-year growth.
• Insider trading activity has been observed with significant share sales by company executives, including the CTO, which could signal mixed sentiments about the stock's near-term prospects.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s share price was up 8.2% during trading on Thursday . The company traded as high as $324.64 and last traded at $322.72. Approximately 109,825 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 323,422 shares. The stock had previously closed at $298.25.

InterDigital Stock Up 8.9%

The stock has a market capitalization of $8.38 billion, a PE ratio of 23.16, a price-to-earnings-growth ratio of 1.52 and a beta of 1.42. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.02. The company's 50-day moving average is $254.34 and its 200 day moving average is $226.71.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, beating the consensus estimate of $2.77 by $3.75. The firm had revenue of $300.60 million during the quarter, compared to analyst estimates of $167.93 million. InterDigital had a net margin of 51.92% and a return on equity of 53.44%. InterDigital's revenue was up 34.5% on a year-over-year basis. During the same period last year, the firm posted $4.57 EPS. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. As a group, analysts anticipate that InterDigital, Inc. will post 9.21 EPS for the current year.

Insider Buying and Selling

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $261.03, for a total transaction of $261,030.00. Following the completion of the transaction, the chief technology officer directly owned 67,122 shares of the company's stock, valued at approximately $17,520,855.66. This trade represents a 1.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Joshua D. Schmidt sold 466 shares of the firm's stock in a transaction on Friday, August 29th. The stock was sold at an average price of $273.12, for a total transaction of $127,273.92. Following the transaction, the insider directly owned 28,370 shares of the company's stock, valued at approximately $7,748,414.40. This trade represents a 1.62% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 3,932 shares of company stock valued at $1,010,930 over the last three months. 2.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On InterDigital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Twin Peaks Wealth Advisors LLC purchased a new stake in InterDigital in the 2nd quarter worth $28,000. Elequin Capital LP acquired a new position in shares of InterDigital during the 4th quarter worth about $29,000. Wayfinding Financial LLC purchased a new stake in InterDigital during the 1st quarter worth approximately $32,000. Global Wealth Strategies & Associates purchased a new stake in shares of InterDigital during the second quarter worth approximately $38,000. Finally, Headlands Technologies LLC acquired a new stake in shares of InterDigital in the first quarter valued at about $35,000. Hedge funds and other institutional investors own 99.83% of the company's stock.

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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