InterDigital (NASDAQ:IDCC) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of InterDigital (NASDAQ:IDCC) from a hold rating to a strong-buy rating in a report published on Thursday,Zacks.com reports.

Separately, Weiss Ratings lowered shares of InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $416.67.

InterDigital Trading Up 0.5%

NASDAQ:IDCC opened at $304.83 on Thursday. The firm has a market capitalization of $7.88 billion, a price-to-earnings ratio of 35.16 and a beta of 1.42. InterDigital has a 1-year low of $247.66 and a 1-year high of $412.60. The business’s 50-day moving average price is $270.56 and its two-hundred day moving average price is $311.00. The company has a current ratio of 1.74, a quick ratio of 1.88 and a debt-to-equity ratio of 0.06.

InterDigital (NASDAQ:IDCC) last released its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping the consensus estimate 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% compared to the same quarter last year. During the same quarter last year, the firm 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 expect that InterDigital will post 7.41 earnings per share for the current year.

InterDigital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th were given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, July 8th. InterDigital’s dividend payout ratio (DPR) is 32.30%.

Insider Buying and Selling

In related news, CTO Rajesh Pankaj sold 1,500 shares of the business’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $286.00, for a total value of $429,000.00. Following the completion of the sale, the chief technology officer directly owned 67,976 shares in the company, valued at $19,441,136. The trade was a 2.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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 business’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $130,020.80. Following the completion of the sale, the director directly owned 4,608 shares of the company’s stock, valued at $1,274,757.12. This represents a 9.26% 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. Over the last 90 days, insiders sold 5,872 shares of company stock valued at $1,654,159. Insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD raised its stake in InterDigital by 62.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock worth $707,477,000 after acquiring an additional 854,845 shares in the last quarter. Geode Capital Management LLC boosted its position in InterDigital by 18.6% during the 4th 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. Reinhart Partners LLC. grew its holdings in InterDigital by 9.0% during the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider’s stock worth $130,359,000 after acquiring an additional 38,115 shares during the last quarter. Invesco Ltd. grew its holdings in InterDigital by 24.8% during 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 last quarter. Finally, Norges Bank acquired a new position in InterDigital in the 4th quarter valued at approximately $128,918,000. 99.83% of the stock is owned by institutional investors.

Key Stories Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company’s first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million–$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85–$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million–$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance?
• Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration.
• Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs

About InterDigital

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.