InterDigital (NASDAQ:IDCC) Shares Down 6.9% – Here’s What Happened

InterDigital, Inc. (NASDAQ:IDCC)’s share price fell 6.9% during trading on Tuesday . The stock traded as low as $308.89 and last traded at $312.5440. 87,644 shares changed hands during trading, a decline of 50% from the average session volume of 175,963 shares. The stock had previously closed at $335.84.

Trending Headlines about InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: InterDigital renewed a worldwide, non‑exclusive, royalty‑bearing licensing agreement with a major Chinese vendor — a meaningful contract that supports recurring royalty revenue and reduces execution risk in an important market. Read More.
• Neutral Sentiment: The company will present at the Needham Growth Conference on Jan. 14 — provides management access to investors and could clarify near‑term drivers but is unlikely by itself to change fundamentals. Read More.
• Neutral Sentiment: Company pays a quarterly dividend (announced recently) and continues to cite strong EPS guidance for FY2025 — supportive background but yield is modest. Read More.
• Negative Sentiment: CFO Richard Brezski sold substantial blocks (6,981 shares on Jan. 5 at ~$330.49 and 5,002 shares on Jan. 6 at ~$324.08), trimming his holding ~6–7% — large insider sales that often weigh on near‑term sentiment. Read More.
• Negative Sentiment: CEO Lawrence Liren Chen sold 2,975 shares on Jan. 6 at about $334.08 (≈$994k), a visible though smaller reduction that can amplify investor caution when combined with other insider sales. Read More.
• Negative Sentiment: CTO Rajesh Pankaj sold 1,000 shares on Jan. 5 at ~$326.75 (~$327k), a modest cut but part of a cluster of insider dispositions this week. Read More.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Weiss Ratings lowered InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a report on Monday, December 29th. William Blair reiterated an “outperform” rating on shares of InterDigital in a research report on Monday, September 22nd. Zacks Research lowered shares of InterDigital from a “strong-buy” rating to a “hold” rating in a report on Friday, November 21st. Jefferies Financial Group set a $475.00 price objective on shares of InterDigital and gave the stock a “buy” rating in a report on Thursday, October 30th. Finally, Roth Capital upped their target price on shares of InterDigital from $270.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, September 12th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, InterDigital has an average rating of “Moderate Buy” and a consensus target price of $416.67.

InterDigital Stock Performance

The company has a market cap of $7.90 billion, a P/E ratio of 20.69 and a beta of 1.57. The company’s fifty day moving average is $344.94 and its 200 day moving average is $308.90. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 0.02.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings results on Thursday, October 30th. The Wireless communications provider reported $1.93 earnings per share for the quarter, topping the consensus estimate of $1.79 by $0.14. InterDigital had a net margin of 53.50% and a return on equity of 51.89%. The business had revenue of $164.68 million during the quarter, compared to the consensus estimate of $153.43 million. During the same period in the previous year, the firm posted $1.14 earnings per share. The firm’s revenue for the quarter was up 28.0% on a year-over-year basis. InterDigital has set its FY 2025 guidance at 14.570-14.830 EPS and its Q4 2025 guidance at 1.380-1.630 EPS. As a group, equities analysts predict that InterDigital, Inc. will post 9.21 earnings per share for the current fiscal year.

InterDigital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 28th. Shareholders of record on Wednesday, January 14th will be given a $0.70 dividend. The ex-dividend date is Wednesday, January 14th. This represents a $2.80 annualized dividend and a yield of 0.9%. InterDigital’s payout ratio is presently 18.89%.

Insider Activity

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of the business’s stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $375.31, for a total value of $375,310.00. Following the transaction, the chief technology officer owned 64,157 shares in the company, valued at approximately $24,078,763.67. The trade was a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Lawrence Liren Chen sold 2,975 shares of the company’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $334.08, for a total transaction of $993,888.00. Following the transaction, the chief executive officer directly owned 173,910 shares of the company’s stock, valued at approximately $58,099,852.80. This trade represents a 1.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 25,865 shares of company stock worth $8,684,906 over the last ninety days. Company insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On InterDigital

A number of large investors have recently modified their holdings of IDCC. Moran Wealth Management LLC lifted its holdings in InterDigital by 0.6% during the third quarter. Moran Wealth Management LLC now owns 4,751 shares of the Wireless communications provider’s stock worth $1,640,000 after buying an additional 29 shares during the period. CoreCap Advisors LLC raised its position in shares of InterDigital by 15.6% in the 3rd quarter. CoreCap Advisors LLC now owns 245 shares of the Wireless communications provider’s stock worth $85,000 after acquiring an additional 33 shares in the last quarter. Teacher Retirement System of Texas raised its position in shares of InterDigital by 0.4% in the 2nd quarter. Teacher Retirement System of Texas now owns 11,388 shares of the Wireless communications provider’s stock worth $2,554,000 after acquiring an additional 41 shares in the last quarter. Creative Planning lifted its stake in shares of InterDigital by 0.3% during the 2nd quarter. Creative Planning now owns 15,345 shares of the Wireless communications provider’s stock worth $3,441,000 after purchasing an additional 46 shares during the last quarter. Finally, Archer Investment Corp boosted its position in InterDigital by 4.3% during the third quarter. Archer Investment Corp now owns 1,117 shares of the Wireless communications provider’s stock valued at $386,000 after purchasing an additional 46 shares in the last quarter. Institutional investors own 99.83% of the company’s stock.

InterDigital Company Profile

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company’s principal services include patent licensing, technology evaluation and consulting.