InterDigital (NASDAQ:IDCC) Stock Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• InterDigital shares broke above their 200-day moving average, reaching $329.93 and recently trading at $326.78. Analysts maintain a consensus “Buy” rating with a $450 price target.
• The company reported substantially better-than-expected quarterly results, posting $4.62 in EPS versus the $0.90 consensus estimate and $260.17 million in revenue, though revenue declined 13.4% year over year.
• InterDigital raised its quarterly dividend to $0.75 per share, while insiders sold 4,800 shares worth approximately $1.6 million over the past 90 days; institutional investors own 99.83% of the stock.

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $307.67 and traded as high as $329.93. InterDigital shares last traded at $326.78, with a volume of 195,598 shares trading hands.

Analyst Ratings Changes

Several research analysts have recently commented on IDCC shares. Weiss Ratings upgraded InterDigital from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Zacks Research upgraded InterDigital from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $450.00.

InterDigital Trading Up 1.4%

The business's 50 day moving average price is $334.40 and its 200-day moving average price is $307.67. 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 company has a market cap of $8.43 billion, a price-to-earnings ratio of 37.69 and a beta of 1.43.

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 analysts' consensus estimates of $0.90 by $3.72. The business 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 quarterly revenue was down 13.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $6.52 EPS. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. On average, equities analysts anticipate that InterDigital, Inc. will post 9.42 EPS for the current fiscal year.

InterDigital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be issued a dividend of $0.75 per share. This is a boost from InterDigital's previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, October 14th. InterDigital's dividend payout ratio is presently 34.60%.

Insider Activity at InterDigital

In other news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $324.88, for a total value of $487,320.00. Following the transaction, the chief technology officer owned 66,516 shares of the company's stock, valued at approximately $21,609,718.08. This represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan Gillman sold 300 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $331.06, for a total value of $99,318.00. Following the transaction, the director owned 22,736 shares in the company, valued at approximately $7,526,980.16. This trade represents a 1.30% decrease in their position. 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 4,800 shares of company stock worth $1,595,118 in the last ninety days. 3.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in IDCC. Bank of America Corp DE acquired a new stake in shares of InterDigital in the second quarter valued at approximately $46,953,000. Royal Bank of Canada boosted its stake in shares of InterDigital by 375.7% in the first quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider's stock valued at $60,297,000 after buying an additional 157,687 shares during the period. Neumeier Poma Investment Counsel LLC acquired a new stake in InterDigital during the second quarter worth approximately $42,350,302. Arrowstreet Capital Limited Partnership grew its position in InterDigital by 135.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 219,388 shares of the Wireless communications provider's stock worth $66,255,000 after buying an additional 126,328 shares in the last quarter. Finally, Summit Street Capital Management LLC acquired a new stake in InterDigital during the second quarter worth approximately $18,163,000. 99.83% of the stock is owned by institutional investors and hedge funds.

InterDigital Company Profile

InterDigital, Inc is a technology research and development company that creates advanced wireless, video and related connectivity technologies. Its work supports communications across cellular networks, including 4G and 5G, as well as Wi-Fi, the Internet of Things and other connected devices.

The company's primary business is developing intellectual property and licensing its patented technologies to manufacturers and other industry participants. Its portfolio includes innovations related to wireless communications, radio access networks, signal processing, video compression and delivery, and connected-device functionality.

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