Zacks Research Has Negative View of InterDigital Q3 Earnings

InterDigital, Inc. (NASDAQ:IDCC) – Analysts at Zacks Research decreased their Q3 2026 EPS estimates for shares of InterDigital in a report issued on Friday, September 11th. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings of $1.68 per share for the quarter, down from their previous forecast of $1.78. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for InterDigital’s current full-year earnings is $9.76 per share. Zacks Research also issued estimates for InterDigital’s Q1 2027 earnings at $1.99 EPS.

Separately, Weiss Ratings cut shares of InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, InterDigital currently has a consensus rating of “Buy” and a consensus price target of $450.00.

InterDigital Stock Performance

Shares of IDCC stock opened at $340.38 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. InterDigital has a 12-month low of $249.14 and a 12-month high of $412.60. The business’s 50 day moving average is $311.44 and its two-hundred day moving average is $310.50. The company has a market capitalization of $8.79 billion, a P/E ratio of 39.26 and a beta of 1.43.

InterDigital (NASDAQ:IDCC) last released its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating the consensus estimate of $0.90 by $3.72. The company 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%. The firm’s revenue was down 13.4% on a year-over-year basis. 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.

InterDigital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th will be paid a $0.75 dividend. The ex-dividend date of this dividend is Wednesday, October 14th. This represents a $3.00 annualized dividend and a yield of 0.9%. This is an increase from InterDigital’s previous quarterly dividend of $0.70. InterDigital’s dividend payout ratio is currently 32.30%.

Insider Buying and Selling at InterDigital

In other news, Director John D. Jr. Markley sold 400 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total value of $120,000.00. Following the completion of the sale, the director directly owned 11,735 shares in the company, valued at $3,520,500. This represents a 3.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 300 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $331.06, for a total transaction of $99,318.00. Following the completion of the transaction, the director directly owned 22,736 shares in the company, valued at approximately $7,526,980.16. This represents a 1.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 5,200 shares of company stock worth $1,642,638. Corporate insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Tidal Investments LLC grew its holdings in shares of InterDigital by 19.0% in the second quarter. Tidal Investments LLC now owns 78,161 shares of the Wireless communications provider’s stock valued at $22,130,000 after purchasing an additional 12,501 shares during the period. Integrated Wealth Concepts LLC increased its holdings in InterDigital by 5.0% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 1,447 shares of the Wireless communications provider’s stock valued at $410,000 after purchasing an additional 69 shares during the last quarter. IFP Advisors Inc raised its position in InterDigital by 3.7% in the second quarter. IFP Advisors Inc now owns 1,292 shares of the Wireless communications provider’s stock valued at $366,000 after purchasing an additional 46 shares during the period. Nykredit A S acquired a new position in InterDigital during the second quarter worth $259,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of InterDigital during the second quarter worth $2,534,000. 99.83% of the stock is owned by hedge funds and other institutional investors.

InterDigital Company Profile

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.