InterDigital (NASDAQ:IDCC) Hits New 1-Year High – Here’s Why

InterDigital, Inc. (NASDAQ:IDCC)’s stock price reached a new 52-week high during trading on Friday . The company traded as high as $363.22 and last traded at $358.27, with a volume of 375 shares changing hands. The stock had previously closed at $356.10.

Analyst Ratings Changes

IDCC has been the topic of several research analyst reports. Weiss Ratings restated a “buy (b)” rating on shares of InterDigital in a research report on Saturday, September 27th. Roth Capital upped their price target on InterDigital from $270.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, September 12th. William Blair reiterated an “outperform” rating on shares of InterDigital in a research report on Monday, September 22nd. Finally, Jefferies Financial Group restated a “hold” rating and set a $340.00 target price on shares of InterDigital in a research report on Monday, September 29th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, InterDigital presently has a consensus rating of “Moderate Buy” and an average target price of $345.00.

InterDigital Stock Performance

The business has a 50 day moving average price of $292.70 and a 200 day moving average price of $241.83. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.02. The stock has a market cap of $8.75 billion, a P/E ratio of 24.17, a PEG ratio of 1.67 and a beta of 1.44.

InterDigital (NASDAQ:IDCC) last released its earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share for the quarter, topping analysts’ consensus estimates of $2.77 by $3.75. The business had revenue of $300.60 million for the quarter, compared to analyst estimates of $167.93 million. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The business’s revenue was up 34.5% compared to the same quarter last year. During the same quarter last year, the firm posted $4.57 earnings per share. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. As a group, sell-side analysts expect that InterDigital, Inc. will post 9.21 EPS for the current year.

InterDigital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 0.8%. This is an increase from InterDigital’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Wednesday, October 8th. InterDigital’s payout ratio is currently 17.11%.

Insiders Place Their Bets

In other InterDigital news, insider Joshua D. Schmidt sold 466 shares of the company’s stock in a transaction on Friday, August 29th. The stock was sold at an average price of $273.12, for a total value of $127,273.92. Following the completion of the sale, the insider directly owned 28,370 shares in the company, valued at approximately $7,748,414.40. This represents a 1.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Rajesh Pankaj sold 1,000 shares of the stock in a transaction on Friday, September 5th. The stock was sold at an average price of $289.78, for a total value of $289,780.00. Following the transaction, the chief technology officer directly owned 66,122 shares in the company, valued at $19,160,833.16. The trade was a 1.49% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,466 shares of company stock valued at $902,664. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On InterDigital

Hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in shares of InterDigital during the second quarter valued at approximately $71,200,000. New Vernon Capital Holdings II LLC lifted its holdings in InterDigital by 25,257.5% during the first quarter. New Vernon Capital Holdings II LLC now owns 204,889 shares of the Wireless communications provider’s stock worth $42,361,000 after buying an additional 204,081 shares during the period. Bessemer Group Inc. boosted its position in InterDigital by 152,729.3% during the 1st quarter. Bessemer Group Inc. now owns 114,622 shares of the Wireless communications provider’s stock valued at $23,700,000 after acquiring an additional 114,547 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of InterDigital by 303.1% in the 2nd quarter. Empowered Funds LLC now owns 143,406 shares of the Wireless communications provider’s stock valued at $32,156,000 after acquiring an additional 107,828 shares during the period. Finally, Nuveen LLC bought a new position in shares of InterDigital in the 1st quarter worth $20,967,000. Hedge funds and other institutional investors own 99.83% of the company’s stock.

InterDigital Company Profile

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.