Zacks Research Has Weak Outlook for InterDigital Q3 Earnings

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Zacks Research reduced their Q3 2026 EPS estimates for InterDigital in a research note issued on Tuesday, June 16th. Zacks Research analyst Team now forecasts that the Wireless communications provider will post earnings per share of $1.78 for the quarter, down from their prior estimate of $1.80. The consensus estimate for InterDigital's current full-year earnings is $7.41 per share. Zacks Research also issued estimates for InterDigital's Q4 2026 earnings at $2.13 EPS and Q1 2028 earnings at $2.07 EPS.

IDCC has been the topic of several other research reports. Weiss Ratings downgraded shares of InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday. Wall Street Zen raised shares of InterDigital from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Jefferies Financial Group restated a "buy" rating on shares of InterDigital in a research note on Wednesday, March 18th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $416.67.

InterDigital Stock Down 0.6%

Shares of NASDAQ IDCC opened at $287.15 on Wednesday. The firm has a 50-day simple moving average of $299.42 and a two-hundred day simple moving average of $325.26. InterDigital has a 1 year low of $213.06 and a 1 year high of $412.60. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.88 and a quick ratio of 1.88. The company has a market cap of $7.42 billion, a P/E ratio of 27.04 and a beta of 1.43.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.54 by $0.03. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The company had revenue of $205.42 million for the quarter, compared to the consensus estimate of $196.85 million. During the same quarter in the prior year, the firm earned $3.45 earnings per share. InterDigital's revenue was down 2.4% on a year-over-year basis. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS.

InterDigital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th will be paid a $0.70 dividend. The ex-dividend date is Wednesday, July 8th. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. InterDigital's payout ratio is 26.37%.

Insiders Place Their Bets

In other news, Director Jean F. Rankin sold 365 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $276.64, for a total transaction of $100,973.60. Following the sale, the director owned 28,938 shares of the company's stock, valued at approximately $8,005,408.32. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Samir Armaly sold 470 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $276.64, for a total value of $130,020.80. Following the completion of the sale, the director owned 4,608 shares in the company, valued at approximately $1,274,757.12. The trade was a 9.26% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 5,472 shares of company stock valued at $1,575,109. Corporate insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On InterDigital

Several hedge funds and other institutional investors have recently bought and sold shares of IDCC. Price T Rowe Associates Inc. MD lifted its stake in InterDigital by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock valued at $707,477,000 after buying an additional 854,845 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock worth $251,250,000 after buying an additional 123,686 shares during the period. Invesco Ltd. boosted its holdings in InterDigital by 24.8% in the 4th quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider's stock worth $143,546,000 after acquiring an additional 89,647 shares during the period. Reinhart Partners LLC. grew its stake in InterDigital by 1.3% during the 4th quarter. Reinhart Partners LLC. now owns 417,639 shares of the Wireless communications provider's stock valued at $132,973,000 after purchasing an additional 5,293 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of InterDigital in the fourth quarter worth $128,918,000. 99.83% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: InterDigital won a European patent injunction against Disney, with the Unified Patent Court ruling that Disney infringed an InterDigital video-encoding patent and confirming the patent’s validity. The injunction spans 11 EU countries and could strengthen InterDigital’s leverage in licensing negotiations. InterDigital awarded injunction against Disney by Unified Patent Court
• Positive Sentiment: The company is highlighting its video and AI technology leadership at the FOKUS Media Web Symposium, showcasing energy-efficient streaming and interactive AR capabilities that reinforce its innovation pipeline and licensing value. InterDigital to Spotlight Innovation Underpinning Interactive AR and Energy-Efficient Video Streaming at 2026 FOKUS Media Web Symposium
• Neutral Sentiment: InterDigital shareholders approved bylaw and governance changes at the annual meeting, a routine corporate update with limited immediate operating impact. InterDigital Shareholders Approve Bylaw Changes and Governance Items
• Negative Sentiment: Several directors disclosed stock sales under pre-arranged 10b5-1 plans, which can weigh on sentiment even if the trades were not discretionary. SEC Form 4 - Derek K. Aberle sale SEC Form 4 - John A. Kritzmacher sale SEC Form 4 - Jean F. Rankin sale SEC Form 4 - Samir Armaly sale

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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