Fundsmith LLP Takes $17.08 Million Position in InterDigital, Inc. $IDCC

Fundsmith LLP purchased a new position in shares of InterDigital, Inc. (NASDAQ:IDCC) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 60,324 shares of the Wireless communications provider’s stock, valued at approximately $17,080,000.

Several other institutional investors and hedge funds have also made changes to their positions in IDCC. NewEdge Advisors LLC increased its holdings in InterDigital by 37.6% during the 1st quarter. NewEdge Advisors LLC now owns 3,911 shares of the Wireless communications provider’s stock valued at $809,000 after acquiring an additional 1,069 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of InterDigital by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 77,066 shares of the Wireless communications provider’s stock valued at $15,933,000 after purchasing an additional 4,105 shares in the last quarter. Russell Investments Group Ltd. grew its position in shares of InterDigital by 85.8% in the second quarter. Russell Investments Group Ltd. now owns 6,407 shares of the Wireless communications provider’s stock valued at $1,437,000 after purchasing an additional 2,958 shares during the last quarter. AXA S.A. increased its stake in shares of InterDigital by 12.4% during the 2nd quarter. AXA S.A. now owns 34,283 shares of the Wireless communications provider’s stock worth $7,687,000 after purchasing an additional 3,788 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its stake in shares of InterDigital by 2.9% during the 2nd quarter. Qube Research & Technologies Ltd now owns 127,983 shares of the Wireless communications provider’s stock worth $28,698,000 after purchasing an additional 3,643 shares in the last quarter. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

Key InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Strong Q2 results and higher outlook support the growth story. InterDigital reported quarterly EPS of $4.62 versus the $0.90 consensus estimate and revenue of $260.2 million versus expectations of $143.1 million. Record recurring revenue, an Amazon licensing agreement and raised fiscal 2026 guidance of $10.85-$12.81 EPS provide additional catalysts. Should IDCC Stock Be in Your Portfolio After Solid Q2 Results?
• Positive Sentiment: Analysts raised multiple forward earnings estimates. Zacks Research increased its fiscal 2026 EPS forecast to $10.13 from $7.41, fiscal 2027 EPS to $8.49 from $7.82 and fiscal 2028 EPS to $10.83 from $8.88. Estimates for individual 2027 and 2028 quarters were also raised, and Zacks maintained a “Strong-Buy” rating. The revisions signal improving expectations for licensing revenue and profitability.
• Positive Sentiment: Wall Street’s consensus target implies further upside. A Zacks analysis cited a consensus price target indicating approximately 26.2% potential upside. While price targets alone have limited predictive value, the accompanying upward earnings-revision trend is a more constructive near-term signal. Wall Street Analysts See a 26.24% Upside in InterDigital
• Neutral Sentiment: Valuation is described as roughly fair despite strong returns. InterDigital’s profitability and returns remain attractive, but its elevated P/E ratio means additional gains may depend on continued earnings growth and successful licensing execution. InterDigital Stock Looks Fairly Valued While Returns Stay Strong

InterDigital Stock Performance

Shares of IDCC opened at $335.15 on Monday. 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 company has a market capitalization of $8.65 billion, a price-to-earnings ratio of 38.66 and a beta of 1.43. The company’s 50 day simple moving average is $298.94 and its 200 day simple moving average is $312.32. InterDigital, Inc. has a 1 year low of $249.14 and a 1 year high of $412.60.

InterDigital (NASDAQ:IDCC) last announced its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $3.72. The firm 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 revenue was down 13.4% compared to the same quarter last year. During the same quarter last year, the business earned $6.52 earnings per share. 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, Inc. will post 9.76 EPS for the current year.

InterDigital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th were issued a dividend of $0.70 per share. The ex-dividend date was Wednesday, July 8th. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. InterDigital’s dividend payout ratio (DPR) is 32.30%.

Insiders Place Their Bets

In related news, Director Samir Armaly sold 470 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $276.64, for a total transaction of $130,020.80. Following the transaction, the director directly owned 4,608 shares in the company, valued at approximately $1,274,757.12. This represents a 9.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $324.88, for a total value of $487,320.00. Following the completion of the sale, the chief technology officer directly owned 66,516 shares in the company, valued at approximately $21,609,718.08. The trade was a 2.21% decrease in their ownership of the stock. 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 7,672 shares of company stock valued at $2,240,797. 3.50% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on IDCC. Weiss Ratings lowered InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Zacks Research raised InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, InterDigital has a consensus rating of “Buy” and an average target price of $416.67.

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.