InterDigital (NASDAQ:IDCC) Shares Break Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• InterDigital shares broke above their 200-day moving average, reaching $333.82 before last trading at $327.14, though the stock was reported down 2.1%.
• Analyst sentiment is bullish: the consensus rating is “Buy,” with a price target of $450, while recent quarterly earnings and revenue significantly exceeded estimates.
• InterDigital raised its quarterly dividend from $0.70 to $0.75 per share, producing a $3.00 annualized payout and a 0.9% yield; meanwhile, insiders sold 4,800 shares over the past 90 days.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $307.56 and traded as high as $333.82. InterDigital shares last traded at $327.14, with a volume of 113,013 shares trading hands.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Zacks Research raised InterDigital from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 30th. Weiss Ratings upgraded InterDigital from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $450.00.

InterDigital Trading Down 2.1%

The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. The stock has a market cap of $8.44 billion, a P/E ratio of 37.73 and a beta of 1.43. The firm's 50-day simple moving average is $323.84 and its 200 day simple moving average is $307.56.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating the consensus estimate of $0.90 by $3.72. The company had revenue of $260.17 million for the quarter, compared to analyst estimates of $143.10 million. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. InterDigital's revenue was down 13.4% compared to the same quarter last year. During the same quarter last year, the business earned $6.52 earnings per share. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. As a group, equities research analysts anticipate that InterDigital, Inc. will post 9.52 earnings per share for the current year.

InterDigital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th will be given a $0.75 dividend. The ex-dividend date is Wednesday, October 14th. This represents a $3.00 annualized dividend and a yield of 0.9%. This is an increase from InterDigital's previous quarterly dividend of $0.70. InterDigital's payout ratio is 32.30%.

Insider Buying and Selling at InterDigital

In other news, CTO Rajesh Pankaj sold 1,500 shares of the firm's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $338.00, for a total transaction of $507,000.00. Following the transaction, the chief technology officer directly owned 65,016 shares of the company's stock, valued at approximately $21,975,408. This trade represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 300 shares of the firm's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $331.06, for a total value of $99,318.00. Following the transaction, the director directly owned 22,736 shares in the company, valued at $7,526,980.16. This trade represents a 1.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 4,800 shares of company stock worth $1,522,638 in the last ninety days. 3.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On InterDigital

Institutional investors and hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC raised its position in shares of InterDigital by 19.0% during the 2nd quarter. Tidal Investments LLC now owns 78,161 shares of the Wireless communications provider's stock worth $22,130,000 after buying an additional 12,501 shares in the last quarter. Integrated Wealth Concepts LLC boosted its holdings in shares of InterDigital by 5.0% in the second quarter. Integrated Wealth Concepts LLC now owns 1,447 shares of the Wireless communications provider's stock valued at $410,000 after acquiring an additional 69 shares in the last quarter. IFP Advisors Inc boosted its holdings in shares of InterDigital by 3.7% in the second quarter. IFP Advisors Inc now owns 1,292 shares of the Wireless communications provider's stock valued at $366,000 after acquiring an additional 46 shares in the last quarter. Nykredit A S acquired a new position in shares of InterDigital during the second quarter valued at approximately $259,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of InterDigital during the second quarter valued at approximately $2,534,000. Institutional investors own 99.83% of the company's stock.

InterDigital Company Profile

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.

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