InterDigital (NASDAQ:IDCC) Reaches New 1-Year High – Time to Buy?

Shares of InterDigital, Inc. (NASDAQ:IDCC) hit a new 52-week high on Tuesday . The stock traded as high as $378.86 and last traded at $371.00, with a volume of 211702 shares. The stock had previously closed at $366.85.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. William Blair reaffirmed an “outperform” rating on shares of InterDigital in a research report on Monday, September 22nd. Weiss Ratings upgraded InterDigital from a “buy (b+)” rating to a “buy (a)” rating in a report on Tuesday, October 14th. Roth Capital increased their target price on InterDigital from $270.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, September 12th. Finally, Jefferies Financial Group reissued a “hold” rating and set a $340.00 price target on shares of InterDigital in a research report on Monday, September 29th. One 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’s stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $345.00.

InterDigital Trading Up 1.1%

The stock has a market capitalization of $9.57 billion, a PE ratio of 26.44, a PEG ratio of 1.80 and a beta of 1.44. 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 business’s 50-day moving average is $314.61 and its two-hundred day moving average is $253.03.

InterDigital (NASDAQ:IDCC) last issued its quarterly earnings data on Thursday, July 31st. The Wireless communications provider reported $6.52 EPS for the quarter, topping analysts’ consensus estimates of $2.77 by $3.75. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The company had revenue of $300.60 million for the quarter, compared to analysts’ expectations of $167.93 million. During the same quarter in the previous year, the firm posted $4.57 earnings per share. The firm’s quarterly revenue was up 34.5% on a year-over-year basis. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. On average, analysts predict that InterDigital, Inc. will post 9.21 earnings per share for the current year.

InterDigital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Wednesday, October 8th will be paid a dividend of $0.70 per share. 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%. The ex-dividend date is Wednesday, October 8th. InterDigital’s payout ratio is 19.96%.

Insider Buying and Selling at InterDigital

In other news, 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 directly owned 28,370 shares in the company, valued at approximately $7,748,414.40. This represents a 1.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Rajesh Pankaj sold 1,000 shares of InterDigital stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $261.03, for a total transaction of $261,030.00. Following the sale, the chief technology officer directly owned 67,122 shares in the company, valued at $17,520,855.66. This trade represents a 1.47% decrease in their position. The disclosure for this sale can be found here. Insiders sold 3,466 shares of company stock valued at $1,016,164 over the last 90 days. Insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IDCC. GAMMA Investing LLC grew its stake in InterDigital by 53.9% during the 1st quarter. GAMMA Investing LLC now owns 1,450 shares of the Wireless communications provider’s stock valued at $300,000 after purchasing an additional 508 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of InterDigital by 7.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 4,489 shares of the Wireless communications provider’s stock valued at $928,000 after buying an additional 316 shares during the last quarter. Flagship Harbor Advisors LLC grew its position in shares of InterDigital by 4.3% during the first quarter. Flagship Harbor Advisors LLC now owns 1,821 shares of the Wireless communications provider’s stock worth $377,000 after buying an additional 75 shares in the last quarter. Oppenheimer Asset Management Inc. increased its stake in shares of InterDigital by 3.2% in the first quarter. Oppenheimer Asset Management Inc. now owns 1,914 shares of the Wireless communications provider’s stock worth $396,000 after buying an additional 59 shares during the last quarter. Finally, Yorktown Management & Research Co Inc acquired a new stake in InterDigital in the first quarter valued at $300,000. Institutional investors and hedge funds own 99.83% of the company’s stock.

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.