InterDigital, Inc. (NASDAQ:IDCC) Given Average Rating of “Buy” by Analysts

InterDigital, Inc. (NASDAQ:IDCC) has been given a consensus rating of “Buy” by the five analysts that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation, three have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $450.00.

A number of analysts have recently weighed in on the stock. Weiss Ratings cut shares of InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Zacks Research upgraded shares of InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th.

InterDigital Stock Performance

Shares of NASDAQ IDCC opened at $350.13 on Wednesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.74 and a current ratio of 1.74. The firm has a market cap of $9.04 billion, a price-to-earnings ratio of 40.38 and a beta of 1.43. The business’s 50-day simple moving average is $310.29 and its 200-day simple moving average is $310.66. InterDigital has a 52 week low of $249.14 and a 52 week high of $412.60.

InterDigital (NASDAQ:IDCC) last posted its earnings results 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 firm had revenue of $260.17 million during the quarter, compared to analyst estimates of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The company’s revenue for the quarter was down 13.4% on a year-over-year basis. During the same period in the previous 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. As a group, equities research analysts expect that InterDigital will post 9.76 earnings per share for the current fiscal year.

InterDigital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 14th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 0.9%. This is a positive change from InterDigital’s previous quarterly dividend of $0.70. The ex-dividend date is Wednesday, October 14th. InterDigital’s dividend payout ratio is currently 32.30%.

Insider Buying and Selling

In other InterDigital news, 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 sale, 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the business’s stock in a transaction dated 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 owned 65,016 shares in the company, valued at approximately $21,975,408. The trade was a 2.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 5,200 shares of company stock valued at $1,642,638. 3.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On InterDigital

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Keating Financial Advisory Services Inc. bought a new stake in shares of InterDigital in the 2nd quarter worth approximately $25,000. Kemnay Advisory Services Inc. bought a new stake in shares of InterDigital during the fourth quarter valued at approximately $26,000. Anchor Investment Management LLC acquired a new position in shares of InterDigital in the first quarter valued at $30,000. Leonteq Securities AG acquired a new position in shares of InterDigital in the fourth quarter valued at $35,000. Finally, Hantz Financial Services Inc. lifted its position in InterDigital by 219.0% in the fourth quarter. Hantz Financial Services Inc. now owns 134 shares of the Wireless communications provider’s stock worth $43,000 after purchasing an additional 92 shares during the period. 99.83% of the stock is currently owned by institutional investors.

About InterDigital

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.