InterDigital (NASDAQ:IDCC) Shares Up 10.6% Following Earnings Beat

InterDigital, Inc. (NASDAQ:IDCC)’s share price traded up 10.6% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $350.20 and last traded at $347.2250. 108,839 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 272,625 shares. The stock had previously closed at $313.87.

The Wireless communications provider reported $2.12 earnings per share for the quarter, beating the consensus estimate of $1.65 by $0.47. The business had revenue of $158.23 million during the quarter, compared to analysts’ expectations of $155.57 million. InterDigital had a return on equity of 51.89% and a net margin of 53.50%.The firm’s revenue for the quarter was down 37.4% compared to the same quarter last year. During the same quarter last year, the business posted $5.15 EPS. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS.

InterDigital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 28th. Shareholders of record on Wednesday, January 14th were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Wednesday, January 14th. InterDigital’s dividend payout ratio (DPR) is presently 18.89%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on IDCC shares. Zacks Research cut InterDigital from a “strong-buy” rating to a “hold” rating in a report on Friday, November 21st. Weiss Ratings lowered shares of InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Monday, December 29th. Roth Mkm reissued a “buy” rating on shares of InterDigital in a research note on Tuesday, January 20th. Jefferies Financial Group set a $475.00 target price on shares of InterDigital and gave the stock a “buy” rating in a report on Thursday, October 30th. Finally, UBS Group set a $425.00 price target on shares of InterDigital in a report on Monday, December 1st. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $416.67.

Insiders Place Their Bets

In related news, insider Joshua D. Schmidt sold 466 shares of the business’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $325.34, for a total value of $151,608.44. Following the completion of the transaction, the insider owned 27,462 shares of the company’s stock, valued at $8,934,487.08. The trade was a 1.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Lawrence Liren Chen sold 5,958 shares of InterDigital stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $327.62, for a total value of $1,951,959.96. Following the completion of the transaction, the chief executive officer owned 153,077 shares in the company, valued at $50,151,086.74. This represents a 3.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 36,307 shares of company stock worth $11,905,598. 2.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. NewEdge Advisors LLC boosted its stake in InterDigital by 37.6% in the first quarter. NewEdge Advisors LLC now owns 3,911 shares of the Wireless communications provider’s stock valued at $809,000 after acquiring an additional 1,069 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of InterDigital by 5.6% in the 1st 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 worth $15,933,000 after purchasing an additional 4,105 shares in the last quarter. Maryland State Retirement & Pension System grew its stake in InterDigital by 2.2% during the 2nd quarter. Maryland State Retirement & Pension System now owns 7,622 shares of the Wireless communications provider’s stock worth $1,709,000 after buying an additional 162 shares during the last quarter. Monument Capital Management increased its position in InterDigital by 8.9% during the 2nd quarter. Monument Capital Management now owns 1,340 shares of the Wireless communications provider’s stock valued at $300,000 after buying an additional 110 shares in the last quarter. Finally, Fifth Third Wealth Advisors LLC purchased a new stake in InterDigital in the second quarter valued at about $203,000. Institutional investors own 99.83% of the company’s stock.

InterDigital Stock Performance

The firm has a market cap of $8.99 billion, a price-to-earnings ratio of 23.57 and a beta of 1.58. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.89 and a quick ratio of 1.89. The firm has a fifty day simple moving average of $331.41 and a two-hundred day simple moving average of $322.07.

About InterDigital

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.