Zacks Research Forecasts Weaker Earnings for InterDigital

InterDigital, Inc. (NASDAQ:IDCC) – Zacks Research reduced their Q4 2026 earnings per share estimates for InterDigital in a note issued to investors on Monday, December 22nd. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings per share of $1.23 for the quarter, down from their prior estimate of $1.29. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for InterDigital’s current full-year earnings is $9.21 per share. Zacks Research also issued estimates for InterDigital’s Q1 2027 earnings at $1.93 EPS, Q3 2027 earnings at $2.01 EPS and FY2027 earnings at $7.94 EPS.

A number of other equities analysts also recently issued reports on the company. Jefferies Financial Group set a $475.00 price objective on InterDigital and gave the stock a “buy” rating in a report on Thursday, October 30th. William Blair reissued an “outperform” rating on shares of InterDigital in a research note on Monday, September 22nd. UBS Group set a $425.00 price objective on shares of InterDigital in a research note on Monday, December 1st. Roth Capital upped their target price on shares of InterDigital from $270.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, September 12th. Finally, Weiss Ratings reaffirmed a “buy (a-)” rating on shares of InterDigital in a research report on Monday, December 15th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $416.67.

InterDigital Price Performance

IDCC opened at $331.87 on Tuesday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.89 and a current ratio of 1.89. InterDigital has a 52-week low of $169.58 and a 52-week high of $412.60. The stock has a market capitalization of $8.55 billion, a PE ratio of 22.39 and a beta of 1.54. The stock’s 50 day moving average price is $358.17 and its 200-day moving average price is $301.05.

InterDigital (NASDAQ:IDCC) last announced its quarterly earnings results on Thursday, October 30th. The Wireless communications provider reported $1.93 earnings per share for the quarter, beating the consensus estimate of $1.79 by $0.14. InterDigital had a net margin of 53.50% and a return on equity of 51.89%. The business had revenue of $164.68 million during the quarter, compared to analysts’ expectations of $153.43 million. During the same quarter in the prior year, the company posted $1.14 EPS. The firm’s revenue for the quarter was up 28.0% compared to the same quarter last year. InterDigital has set its FY 2025 guidance at 14.570-14.830 EPS and its Q4 2025 guidance at 1.380-1.630 EPS.

Hedge Funds Weigh In On InterDigital

Large investors have recently made changes to their positions in the business. Russell Investments Group Ltd. lifted its holdings in shares of InterDigital by 17.6% in the first quarter. Russell Investments Group Ltd. now owns 3,449 shares of the Wireless communications provider’s stock worth $715,000 after buying an additional 517 shares in the last quarter. Wellington Management Group LLP lifted its stake in InterDigital by 323.0% in the 1st quarter. Wellington Management Group LLP now owns 31,466 shares of the Wireless communications provider’s stock worth $6,506,000 after purchasing an additional 24,027 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of InterDigital by 19.9% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 358,843 shares of the Wireless communications provider’s stock valued at $74,191,000 after purchasing an additional 59,517 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of InterDigital by 71.8% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 2,720 shares of the Wireless communications provider’s stock valued at $562,000 after purchasing an additional 1,137 shares during the last quarter. Finally, Ieq Capital LLC purchased a new position in shares of InterDigital during the first quarter valued at about $210,000. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at InterDigital

In related news, Director John A. Kritzmacher sold 1,250 shares of the firm’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $357.37, for a total value of $446,712.50. Following the transaction, the director owned 17,065 shares of the company’s stock, valued at approximately $6,098,519.05. This trade represents a 6.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Joshua D. Schmidt sold 466 shares of the business’s stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $395.63, for a total value of $184,363.58. Following the sale, the insider directly owned 27,928 shares of the company’s stock, valued at $11,049,154.64. This represents a 1.64% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 6,216 shares of company stock valued at $2,228,529. 2.30% of the stock is owned by company insiders.

InterDigital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 28th. Investors of record on Wednesday, January 14th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Wednesday, January 14th. InterDigital’s dividend payout ratio is 18.89%.

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.