IDT (NYSE:IDT) Hits New 1-Year High - What's Next?

Key Points

• IDT shares reached a new 52-week high of $83.24, trading well above their 50-day and 200-day moving averages. Analysts maintain a “Moderate Buy” consensus, with Freedom Broker raising its price target to $85.
• Quarterly results were mixed: revenue of $338.98 million exceeded expectations, while EPS of $0.94 fell short of the $0.98 consensus estimate. IDT also paid a quarterly dividend of $0.07 per share.
• Insider selling was substantial, with executives and director Judah Schorr selling millions of dollars’ worth of shares near recent highs, potentially raising concerns about insider confidence despite possible personal-finance motivations.

IDT Corporation (NYSE:IDT - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday. The company traded as high as $83.24 and last traded at $83.3090, with a volume of 53,063 shares changing hands. The stock had previously closed at $81.82.

IDT News Roundup

Here are the key news stories impacting IDT this week:

• Positive Sentiment: Higher analyst price target: Freedom Broker raised its price objective for IDT from $75 to $85 and maintained a “buy” rating. The new target suggests additional upside, while the broader analyst consensus remains “Moderate Buy.” Freedom Broker raises target for IDT stock
• Positive Sentiment: Strong share-price momentum: IDT is trading well above its 50-day moving average of $72.01 and 200-day moving average of $61.77, indicating sustained market strength. The company also recently paid a quarterly dividend of $0.07 per share.
• Neutral Sentiment: Mixed quarterly results: Revenue of $338.98 million exceeded the $319 million consensus estimate, but earnings per share of $0.94 missed expectations of $0.98. Analysts project full-year EPS of approximately $3.86.
• Negative Sentiment: Heavy insider selling: CFO Marcelo Fischer sold shares in two transactions totaling approximately $760,854, reducing his position by more than 11% in each sale. EVP Menachem Ash sold roughly $410,000 of stock, while EVP Nadine Shea sold $48,732, or 600 shares. These sales occurred near IDT’s recent highs and could raise concerns about insider confidence, although executives may sell for personal financial reasons. IDT insider sales
• Negative Sentiment: Director also sold shares: Director Schorr reportedly sold approximately $1.12 million of IDT stock, adding to the cluster of insider transactions and potentially weighing on sentiment. IDT director share sale

Wall Street Analysts Forecast Growth

IDT has been the topic of a number of research analyst reports. Zacks Research raised IDT to a "hold" rating in a report on Monday, October 5th. Weiss Ratings raised IDT from a "hold (c+)" rating to a "buy (b)" rating in a report on Tuesday, October 6th. Finally, Freedom Broker raised their price objective on shares of IDT from $75.00 to $85.00 and gave the stock a "buy" rating in a research note on Wednesday, September 30th. Two 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 a consensus price target of $85.00.

IDT Trading Up 1.7%

The business's fifty day moving average price is $72.01 and its two-hundred day moving average price is $61.77. The firm has a market cap of $2.07 billion, a P/E ratio of 24.05 and a beta of 0.60.

IDT (NYSE:IDT - Get Free Report) last released its quarterly earnings results on Monday, September 28th. The utilities provider reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.98 by ($0.04). The company had revenue of $338.98 million for the quarter, compared to the consensus estimate of $319.00 million. IDT had a return on equity of 24.22% and a net margin of 6.67%. Research analysts predict that IDT Corporation will post 3.86 EPS for the current fiscal year.

IDT Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Monday, October 5th were paid a $0.07 dividend. The ex-dividend date was Monday, October 5th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 0.3%. IDT's payout ratio is presently 8.07%.

Insider Activity at IDT

In related news, Director Judah Schorr sold 7,717 shares of the company's stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $81.57, for a total transaction of $629,475.69. Following the completion of the transaction, the director directly owned 108,672 shares in the company, valued at $8,864,375.04. This represents a 6.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Mitch Silberman sold 2,327 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $81.03, for a total transaction of $188,556.81. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 31,818 shares of company stock valued at $2,597,244. 25.41% of the stock is owned by corporate insiders.

Institutional Trading of IDT

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Kahn Brothers Group Inc. bought a new stake in shares of IDT in the second quarter valued at about $18,292,990,000. Bank of New York Mellon Corp increased its stake in IDT by 0.9% during the first quarter. Bank of New York Mellon Corp now owns 117,607 shares of the utilities provider's stock valued at $5,774,000 after acquiring an additional 1,088 shares during the period. Tidal Investments LLC bought a new position in IDT during the second quarter valued at about $646,000. Public Employees Retirement System of Ohio bought a new position in IDT during the second quarter valued at about $596,000. Finally, Entropy Technologies LP acquired a new position in IDT in the 1st quarter valued at approximately $264,000. 59.34% of the stock is currently owned by institutional investors and hedge funds.

About IDT

IDT Corporation NYSE: IDT is a telecommunications and fintech company founded in 1990 by Howard Jonas. The company began as an international long-distance provider and has expanded into consumer communications, payment services and technology solutions for businesses and independent retailers.

Through its BOSS Revolution brand, IDT offers international calling, prepaid wireless services, mobile airtime and data top-ups, and international money-transfer services. Its communications operations also provide wholesale voice services and related connectivity solutions to carriers and other communications providers in markets worldwide.

IDT's National Retail Solutions business provides independent retailers with point-of-sale technology, payment processing, business services and related tools.

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