InterDigital (NASDAQ:IDCC) Upgraded to “Strong-Buy” at Zacks Research

InterDigital (NASDAQ:IDCC) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Thursday,Zacks.com reports.

Separately, Weiss Ratings cut InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $416.67.

InterDigital Trading Up 0.5%

Shares of NASDAQ:IDCC opened at $304.83 on Thursday. The company has a quick ratio of 1.88, a current ratio of 1.74 and a debt-to-equity ratio of 0.06. The company’s 50-day moving average price is $270.56 and its 200 day moving average price is $311.00. The company has a market cap of $7.88 billion, a PE ratio of 35.16 and a beta of 1.42. InterDigital has a fifty-two week low of $247.66 and a fifty-two week high of $412.60.

InterDigital (NASDAQ:IDCC) last issued its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The business had revenue of $260.17 million during the quarter, compared to the consensus estimate of $143.10 million. During the same period in the previous year, the firm posted $6.52 earnings per share. The business’s 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. Sell-side analysts anticipate that InterDigital will post 7.41 earnings per share for the current year.

Insider Activity at InterDigital

In other InterDigital news, Director John A. Kritzmacher sold 365 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $276.64, for a total value of $100,973.60. Following the completion of the sale, the director owned 16,359 shares of the company’s stock, valued at $4,525,553.76. The trade was a 2.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $276.64, for a total value of $144,406.08. Following the completion of the transaction, the director directly owned 7,620 shares in the company, valued at $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 5,872 shares of company stock worth $1,654,159. Company insiders own 3.50% of the company’s stock.

Institutional Trading of InterDigital

Several large investors have recently modified their holdings of IDCC. Handelsbanken Fonder AB boosted its holdings in InterDigital by 15.1% during the second quarter. Handelsbanken Fonder AB now owns 8,550 shares of the Wireless communications provider’s stock valued at $2,421,000 after acquiring an additional 1,120 shares during the period. Reinhart Partners LLC. boosted its stake in InterDigital by 9.0% during the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider’s stock valued at $130,359,000 after purchasing an additional 38,115 shares during the period. Assenagon Asset Management S.A. grew its holdings in InterDigital by 31.3% in the 2nd quarter. Assenagon Asset Management S.A. now owns 12,777 shares of the Wireless communications provider’s stock valued at $3,618,000 after buying an additional 3,049 shares during the last quarter. NewEdge Advisors LLC grew its holdings in InterDigital by 54.9% in the 1st quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider’s stock valued at $2,790,000 after buying an additional 3,274 shares during the last quarter. Finally, Bank of America Corp DE increased its position in InterDigital by 31.3% in the 1st quarter. Bank of America Corp DE now owns 266,724 shares of the Wireless communications provider’s stock worth $80,551,000 after buying an additional 63,524 shares during the period. 99.83% of the stock is owned by institutional investors.

Key Headlines 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

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.