InterDigital (NASDAQ:IDCC) Rating Lowered to “Hold” at Zacks Research

InterDigital (NASDAQ:IDCC) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

Separately, Weiss Ratings upgraded shares of InterDigital from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, InterDigital has an average rating of “Moderate Buy” and an average target price of $450.00.

InterDigital Stock Performance

NASDAQ:IDCC opened at $326.78 on Monday. The business has a 50 day moving average of $334.40 and a 200 day moving average of $307.67. The company has a market capitalization of $8.43 billion, a price-to-earnings ratio of 37.69 and a beta of 1.43. InterDigital has a 1-year low of $249.14 and a 1-year high of $412.60. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74.

InterDigital (NASDAQ:IDCC) last issued its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%. The business had revenue of $260.17 million during the quarter, compared to analyst estimates of $143.10 million. During the same quarter in the prior year, the firm earned $6.52 earnings per share. InterDigital’s revenue for the quarter was down 13.4% on a year-over-year basis. 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, sell-side analysts predict that InterDigital will post 9.42 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Rajesh Pankaj sold 1,500 shares of InterDigital stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $334.32, for a total value of $501,480.00. Following the transaction, the chief technology officer owned 63,516 shares in the company, valued at approximately $21,234,669.12. The trade was a 2.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 300 shares of the business’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $331.06, for a total value of $99,318.00. Following the completion of the sale, the director directly owned 22,736 shares of the company’s stock, valued at approximately $7,526,980.16. This trade represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 4,800 shares of company stock valued at $1,595,118. Company insiders own 3.50% of the company’s stock.

Institutional Investors Weigh In On InterDigital

Several institutional investors have recently bought and sold shares of the stock. Reinhart Partners LLC. lifted its position in InterDigital by 9.0% in the second quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider’s stock valued at $130,359,000 after purchasing an additional 38,115 shares during the last quarter. NewEdge Wealth LLC grew its holdings in shares of InterDigital by 68.4% in the first quarter. NewEdge Wealth LLC now owns 13,783 shares of the Wireless communications provider’s stock worth $4,163,000 after purchasing an additional 5,599 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of InterDigital by 104.7% in the first quarter. Renaissance Technologies LLC now owns 66,098 shares of the Wireless communications provider’s stock worth $19,962,000 after purchasing an additional 33,800 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of InterDigital by 54.9% in the first quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider’s stock worth $2,790,000 after purchasing an additional 3,274 shares during the last quarter. Finally, Hsbc Holdings PLC increased its stake in shares of InterDigital by 2,027.6% in the fourth quarter. Hsbc Holdings PLC now owns 18,170 shares of the Wireless communications provider’s stock worth $5,820,000 after buying an additional 17,316 shares during the period. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

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.