InterDigital (NASDAQ:IDCC) Hits New 1-Year High – Still a Buy?

InterDigital, Inc. (NASDAQ:IDCC)’s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $378.86 and last traded at $371.00, with a volume of 211702 shares changing hands. The stock had previously closed at $366.85.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Roth Capital raised their target price on InterDigital from $270.00 to $350.00 and gave the company a “buy” rating in a report on Friday, September 12th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $340.00 price target on shares of InterDigital in a research report on Monday, September 29th. Weiss Ratings raised InterDigital from a “buy (b+)” rating to a “buy (a)” rating in a research report on Tuesday, October 14th. Finally, William Blair reaffirmed an “outperform” rating on shares of InterDigital in a research report on Monday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $345.00.

InterDigital Stock Down 2.2%

The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $9.39 billion, a PE ratio of 25.94, a P/E/G ratio of 1.83 and a beta of 1.44. The firm has a 50 day simple moving average of $318.33 and a two-hundred day simple moving average of $254.62.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings data on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, beating 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 for the quarter was up 34.5% compared to the same quarter last year. During the same quarter last year, the company earned $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. Research analysts expect that InterDigital, Inc. will post 9.21 EPS for the current year.

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th were paid a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, October 8th. This is an increase from InterDigital’s previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. InterDigital’s dividend payout ratio is 19.96%.

Insiders Place Their Bets

In related news, CTO Rajesh Pankaj sold 1,000 shares of the company’s stock in a transaction on Monday, October 6th. The stock was sold at an average price of $338.08, for a total value of $338,080.00. Following the completion of the transaction, the chief technology officer directly owned 65,122 shares in the company, valued at approximately $22,016,445.76. This represents a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joshua D. Schmidt sold 466 shares of the company’s stock in a transaction on Friday, August 29th. The shares were sold at an average price of $273.12, for a total value of $127,273.92. Following the completion of the transaction, the insider owned 28,370 shares of the company’s stock, valued at $7,748,414.40. The trade was a 1.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 3,466 shares of company stock worth $1,016,164. Corporate insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On InterDigital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CoreCap Advisors LLC increased its stake in InterDigital by 15.6% during the third quarter. CoreCap Advisors LLC now owns 245 shares of the Wireless communications provider’s stock worth $85,000 after acquiring an additional 33 shares during the last quarter. Longboard Asset Management LP purchased a new position in InterDigital in the third quarter valued at about $245,000. City Holding Co. lifted its holdings in InterDigital by 7.9% during the 3rd quarter. City Holding Co. now owns 2,731 shares of the Wireless communications provider’s stock worth $943,000 after buying an additional 200 shares during the last quarter. River Street Advisors LLC bought a new position in InterDigital during the 3rd quarter worth approximately $283,000. Finally, Daymark Wealth Partners LLC bought a new position in InterDigital during the 3rd quarter worth approximately $239,000. 99.83% of the stock is currently owned by institutional investors and hedge funds.

About InterDigital

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.