InterDigital (NASDAQ:IDCC) Raised to Strong-Buy at Zacks Research

InterDigital (NASDAQ:IDCC) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Thursday,Zacks.com reports.

Separately, Weiss Ratings cut shares of InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a report 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 stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $416.67.

InterDigital Trading Up 0.5%

Shares of IDCC opened at $304.83 on Thursday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.88 and a current ratio of 1.74. InterDigital has a 52-week low of $247.66 and a 52-week high of $412.60. The firm has a market cap of $7.88 billion, a price-to-earnings ratio of 35.16 and a beta of 1.42. The business’s fifty day moving average is $270.56 and its 200-day moving average is $311.00.

InterDigital (NASDAQ:IDCC) last announced 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 during the quarter, compared to the consensus estimate of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.InterDigital’s revenue for the quarter was down 13.4% on a year-over-year basis. During the same period in the prior year, the company 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. Equities analysts anticipate that InterDigital will post 7.41 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CTO Rajesh Pankaj sold 1,500 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $286.00, for a total transaction of $429,000.00. Following the sale, the chief technology officer owned 67,976 shares of the company’s stock, valued at $19,441,136. This trade represents a 2.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $276.64, for a total value of $144,406.08. Following the sale, the director owned 7,620 shares in the company, valued at $2,107,996.80. This represents a 6.41% 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 5,872 shares of company stock worth $1,654,159 in the last ninety days. Insiders own 3.50% of the company’s stock.

Institutional Trading of InterDigital

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD increased its stake in shares of InterDigital by 62.5% in the fourth 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 during the period. Geode Capital Management LLC raised its holdings in InterDigital by 18.6% in the 4th quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider’s stock valued at $251,250,000 after buying an additional 123,686 shares during the last quarter. Reinhart Partners LLC. boosted its position 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 buying an additional 38,115 shares during the period. Invesco Ltd. boosted its position 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 buying an additional 89,647 shares during the period. Finally, Norges Bank bought a new stake in InterDigital during the 4th quarter worth approximately $128,918,000. 99.83% of the stock is currently owned by institutional investors.

Trending Headlines about 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

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.