InterDigital (IDCC) Rating Increased to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of InterDigital (NASDAQ:IDCC) from a sell rating to a strong-buy rating in a research report sent to investors on Wednesday. The brokerage currently has $93.00 target price on the Wireless communications provider’s stock.
According to Zacks, “InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. Since their founding in 1972, their engineers have designed and developed a wide range of innovations that are used in digital cellular and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. They solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading wireless companies. “
A number of other equities research analysts have also issued reports on the company. BidaskClub raised InterDigital from a strong sell rating to a sell rating in a research note on Thursday, January 4th. B. Riley reaffirmed a buy rating and issued a $100.00 target price on shares of InterDigital in a research note on Wednesday, January 3rd. Finally, ValuEngine raised InterDigital from a hold rating to a buy rating in a research note on Thursday, November 16th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. InterDigital has a consensus rating of Buy and an average price target of $93.67.
InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, October 26th. The Wireless communications provider reported $1.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.34. InterDigital had a return on equity of 32.77% and a net margin of 42.94%. The firm had revenue of $97.30 million for the quarter, compared to analyst estimates of $94.13 million. During the same quarter in the prior year, the company earned $2.99 EPS. InterDigital’s revenue was down 53.3% on a year-over-year basis. analysts anticipate that InterDigital will post 5.72 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 24th. Shareholders of record on Wednesday, January 10th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date is Tuesday, January 9th. InterDigital’s dividend payout ratio is presently 19.34%.
In other InterDigital news, EVP Jannie K. Lau sold 2,561 shares of the stock in a transaction on Monday, October 30th. The stock was sold at an average price of $72.31, for a total transaction of $185,185.91. Following the transaction, the executive vice president now owns 19,496 shares of the company’s stock, valued at approximately $1,409,755.76. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP James J. Nolan sold 5,020 shares of the stock in a transaction on Monday, November 27th. The stock was sold at an average price of $75.00, for a total value of $376,500.00. Following the transaction, the executive vice president now directly owns 49,063 shares in the company, valued at approximately $3,679,725. The disclosure for this sale can be found here. In the last three months, insiders have sold 8,581 shares of company stock worth $638,186. Corporate insiders own 1.90% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of InterDigital by 1.4% in the 2nd quarter. Vanguard Group Inc. now owns 2,865,421 shares of the Wireless communications provider’s stock worth $221,497,000 after buying an additional 40,030 shares during the period. State Street Corp raised its position in shares of InterDigital by 8.2% in the 2nd quarter. State Street Corp now owns 1,199,522 shares of the Wireless communications provider’s stock worth $92,724,000 after buying an additional 91,286 shares during the period. Dimensional Fund Advisors LP raised its position in shares of InterDigital by 6.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 985,849 shares of the Wireless communications provider’s stock worth $72,708,000 after buying an additional 62,291 shares during the period. Northern Trust Corp raised its position in shares of InterDigital by 2.7% in the 2nd quarter. Northern Trust Corp now owns 614,152 shares of the Wireless communications provider’s stock worth $47,473,000 after buying an additional 16,034 shares during the period. Finally, Renaissance Technologies LLC raised its position in shares of InterDigital by 20.8% in the 2nd quarter. Renaissance Technologies LLC now owns 574,574 shares of the Wireless communications provider’s stock worth $44,415,000 after buying an additional 98,874 shares during the period. 72.84% of the stock is currently owned by institutional investors and hedge funds.
InterDigital, Inc designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc (Hillcrest Labs) subsidiary, sensor and sensor fusion technology.
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