InterDigital (NASDAQ:IDCC) Lowered to “Sell” Rating by Wall Street Zen

Wall Street Zen lowered shares of InterDigital (NASDAQ:IDCC) from a hold rating to a sell rating in a research report released on Saturday morning.

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

InterDigital Price Performance

Shares of NASDAQ:IDCC opened at $358.50 on Friday. The firm has a market cap of $9.21 billion, a price-to-earnings ratio of 30.05 and a beta of 1.58. The firm has a fifty day moving average price of $333.45 and a 200 day moving average price of $332.42. InterDigital has a fifty-two week low of $180.60 and a fifty-two week high of $412.60. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.84 and a current ratio of 1.84.

InterDigital (NASDAQ:IDCC) last announced its quarterly earnings results on Thursday, February 5th. The Wireless communications provider reported $2.12 EPS for the quarter, topping the consensus estimate of $1.65 by $0.47. The business had revenue of $158.23 million for the quarter, compared to analysts’ expectations of $155.57 million. InterDigital had a net margin of 48.76% and a return on equity of 41.09%. The business’s quarterly revenue was down 37.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $5.15 EPS. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS. As a group, sell-side analysts expect that InterDigital will post 9.21 earnings per share for the current fiscal year.

InterDigital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 28th. Stockholders of record on Wednesday, January 14th were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Wednesday, January 14th. InterDigital’s dividend payout ratio (DPR) is 23.47%.

Insider Buying and Selling

In other InterDigital news, CFO Richard Brezski sold 6,981 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $330.49, for a total value of $2,307,150.69. Following the completion of the sale, the chief financial officer owned 83,374 shares of the company’s stock, valued at $27,554,273.26. This trade represents a 7.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Lawrence Liren Chen sold 5,958 shares of the company’s stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 153,077 shares in the company, valued at approximately $50,151,086.74. This represents a 3.75% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 45,087 shares of company stock valued at $15,029,098. Company insiders own 2.80% of the company’s stock.

Institutional Trading of InterDigital

Several institutional investors and hedge funds have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD lifted its holdings in InterDigital by 62.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock valued at $707,477,000 after buying an additional 854,845 shares in the last quarter. Geode Capital Management LLC increased its position in shares of InterDigital by 18.6% during the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider’s stock worth $251,250,000 after acquiring an additional 123,686 shares during the period. Invesco Ltd. boosted its holdings in shares of InterDigital by 24.8% in the fourth quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider’s stock valued at $143,546,000 after purchasing an additional 89,647 shares during the period. Reinhart Partners LLC. grew its stake in InterDigital by 1.3% in the fourth quarter. Reinhart Partners LLC. now owns 417,639 shares of the Wireless communications provider’s stock worth $132,973,000 after purchasing an additional 5,293 shares in the last quarter. Finally, Norges Bank purchased a new position in InterDigital during the 4th quarter worth $128,918,000. 99.83% of the stock is currently owned by institutional investors.

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.