InterDigital (NASDAQ:IDCC) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of InterDigital (NASDAQ:IDCC) from a strong-buy rating to a hold rating in a report released 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 investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $450.00.

InterDigital Price Performance

IDCC opened at $326.78 on Monday. The business’s 50-day moving average is $334.40 and its two-hundred day moving average is $307.67. 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. The firm has a market capitalization of $8.43 billion, a PE ratio of 37.69 and a beta of 1.43.

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

InterDigital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be issued a dividend of $0.75 per share. The ex-dividend date is Wednesday, October 14th. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. This is a boost from InterDigital’s previous quarterly dividend of $0.70. InterDigital’s dividend payout ratio (DPR) is currently 34.60%.

Insider Buying and Selling at InterDigital

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

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Keating Financial Advisory Services Inc. purchased a new stake in shares of InterDigital during the second quarter worth about $25,000. Anchor Investment Management LLC acquired a new position in shares of InterDigital during the first quarter valued at about $30,000. Polaris Financial Partners purchased a new position in shares of InterDigital in the 3rd quarter valued at approximately $33,000. Caitong International Asset Management Co. Ltd raised its position in shares of InterDigital by 431.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 239 shares of the Wireless communications provider’s stock valued at $76,000 after purchasing an additional 194 shares during the last quarter. Finally, Allworth Financial LP purchased a new position in shares of InterDigital in the 2nd quarter valued at approximately $95,000. 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.