Analysts Set InterDigital, Inc. (NASDAQ:IDCC) Target Price at $416.67

Shares of InterDigital, Inc. (NASDAQ:IDCC) have earned a consensus rating of “Buy” from the five brokerages that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $416.6667.

A number of research firms have recently issued reports on IDCC. Weiss Ratings downgraded shares of InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Zacks Research raised shares of InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th.

Insider Activity

In related news, 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 sale, the director owned 22,736 shares of the company’s stock, valued at $7,526,980.16. This trade represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a document filed 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 InterDigital stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $338.00, for a total value of $507,000.00. Following the completion of the transaction, the chief technology officer owned 65,016 shares in the company, valued at $21,975,408. This trade represents a 2.26% decrease in their position. 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 three months, insiders have sold 5,200 shares of company stock worth $1,642,638. 3.50% of the stock is currently owned by company insiders.

Institutional Trading of InterDigital

Several hedge funds have recently modified their holdings of IDCC. California State Teachers Retirement System increased its stake in InterDigital by 27,779.5% during the 2nd quarter. California State Teachers Retirement System now owns 8,412,642 shares of the Wireless communications provider’s stock valued at $2,381,871,000 after purchasing an additional 8,382,467 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of InterDigital by 62.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock worth $707,477,000 after buying an additional 854,845 shares during the period. Norges Bank acquired a new stake in shares of InterDigital during the fourth quarter worth $128,918,000. Bank of America Corp DE purchased a new stake in shares of InterDigital during the second quarter valued at $46,953,000. Finally, Royal Bank of Canada grew its holdings in shares of InterDigital by 375.7% during the first quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider’s stock valued at $60,297,000 after buying an additional 157,687 shares during the last quarter. 99.83% of the stock is owned by hedge funds and other institutional investors.

InterDigital Stock Performance

IDCC stock opened at $350.13 on Wednesday. InterDigital has a 1-year low of $249.14 and a 1-year high of $412.60. The business has a 50-day moving average price of $310.29 and a 200 day moving average price of $310.95. The company has a market capitalization of $9.04 billion, a P/E ratio of 40.38 and a beta of 1.43. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74.

InterDigital (NASDAQ:IDCC) last issued its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $3.72. The company had revenue of $260.17 million for the quarter, compared to analysts’ expectations of $143.10 million. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The firm’s quarterly revenue was down 13.4% on a year-over-year basis. During the same period in the prior year, the business earned $6.52 EPS. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. As a group, equities research analysts forecast that InterDigital will post 9.76 EPS for the current fiscal year.

InterDigital Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be issued a $0.75 dividend. The ex-dividend date is Wednesday, October 14th. This represents a $3.00 dividend on an annualized basis 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 32.30%.

About InterDigital

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.