Prospect Capital Advisors LLC Decreases Stake in InterDigital, Inc. $IDCC

Prospect Capital Advisors LLC reduced its stake in shares of InterDigital, Inc. (NASDAQ:IDCC) by 23.8% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 21,420 shares of the Wireless communications provider’s stock after selling 6,690 shares during the period. InterDigital makes up approximately 3.6% of Prospect Capital Advisors LLC’s investment portfolio, making the stock its 12th biggest holding. Prospect Capital Advisors LLC’s holdings in InterDigital were worth $6,469,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. NewEdge Advisors LLC lifted its position in InterDigital by 37.6% during the 1st quarter. NewEdge Advisors LLC now owns 3,911 shares of the Wireless communications provider’s stock worth $809,000 after acquiring an additional 1,069 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of InterDigital by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 77,066 shares of the Wireless communications provider’s stock valued at $15,933,000 after purchasing an additional 4,105 shares during the period. Russell Investments Group Ltd. raised its stake in shares of InterDigital by 85.8% in the second quarter. Russell Investments Group Ltd. now owns 6,407 shares of the Wireless communications provider’s stock worth $1,437,000 after purchasing an additional 2,958 shares during the last quarter. AXA S.A. lifted its holdings in shares of InterDigital by 12.4% during the second quarter. AXA S.A. now owns 34,283 shares of the Wireless communications provider’s stock worth $7,687,000 after purchasing an additional 3,788 shares during the period. Finally, Qube Research & Technologies Ltd boosted its position in InterDigital by 2.9% in the second quarter. Qube Research & Technologies Ltd now owns 127,983 shares of the Wireless communications provider’s stock valued at $28,698,000 after buying an additional 3,643 shares during the last quarter. 99.83% of the stock is owned by hedge funds and other institutional investors.

InterDigital Trading Up 0.5%

InterDigital stock opened at $304.83 on Friday. The company has a current ratio of 1.74, a quick ratio of 1.88 and a debt-to-equity ratio of 0.06. InterDigital, Inc. has a 12 month low of $247.66 and a 12 month high of $412.60. The stock’s 50 day simple moving average is $270.56 and its two-hundred day simple moving average is $311.00. The firm has a market cap of $7.88 billion, a PE ratio of 35.16 and a beta of 1.42.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating the consensus estimate of $0.90 by $3.72. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The firm had revenue of $260.17 million during the quarter, compared to analyst estimates of $143.10 million. During the same period in the previous year, the firm earned $6.52 EPS. The business’s quarterly revenue was down 13.4% on a year-over-year basis. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Analysts anticipate that InterDigital, Inc. will post 7.41 earnings per share for the current year.

InterDigital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were issued a $0.70 dividend. The ex-dividend date of this dividend was Wednesday, July 8th. This represents a $2.80 dividend on an annualized basis and a yield of 0.9%. InterDigital’s payout ratio is presently 32.30%.

Key Stories Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company’s first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million–$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85–$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million–$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance?
• Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration.
• Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs

Wall Street Analysts Forecast Growth

Several brokerages have commented on IDCC. Zacks Research upgraded shares of InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday. Weiss Ratings downgraded shares of InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $416.67.

Insiders Place Their Bets

In other InterDigital news, Director John A. Kritzmacher sold 365 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $276.64, for a total value of $100,973.60. Following the sale, the director directly owned 16,359 shares of the company’s stock, valued at approximately $4,525,553.76. This trade represents a 2.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Samir Armaly sold 470 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $276.64, for a total value of $130,020.80. Following the transaction, the director directly owned 4,608 shares of the company’s stock, valued at approximately $1,274,757.12. The trade was a 9.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 5,872 shares of company stock valued at $1,654,159. Insiders own 3.50% of the company’s stock.

InterDigital 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.