InterDigital (NASDAQ:IDCC) Upgraded by Jefferies Financial Group to Buy Rating

Jefferies Financial Group upgraded shares of InterDigital (NASDAQ:IDCC) from a hold rating to a buy rating in a report issued on Monday, MarketBeat reports. The firm currently has $450.00 price target on the Wireless communications provider’s stock.

A number of other brokerages have also recently commented on IDCC. William Blair reissued an “outperform” rating on shares of InterDigital in a report on Monday, September 22nd. Roth Capital increased their target price on InterDigital from $270.00 to $350.00 and gave the company a “buy” rating in a report on Friday, September 12th. Finally, Weiss Ratings raised InterDigital from a “buy (b+)” rating to a “buy (a)” rating in a report on Tuesday, October 14th. One analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $400.00.

InterDigital Stock Performance

Shares of IDCC stock opened at $386.83 on Monday. The company has a market capitalization of $9.98 billion, a P/E ratio of 27.57, a P/E/G ratio of 1.86 and a beta of 1.44. The business’s 50 day moving average is $324.96 and its two-hundred day moving average is $259.21. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.02. InterDigital has a 12-month low of $144.46 and a 12-month high of $393.28.

InterDigital (NASDAQ:IDCC) last issued its quarterly earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share (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 the consensus estimate of $167.93 million. During the same quarter in the prior year, the business posted $4.57 earnings per share. InterDigital’s revenue for the quarter 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. Analysts expect that InterDigital will post 9.21 EPS for the current fiscal year.

InterDigital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th were issued a $0.70 dividend. This is a boost from InterDigital’s previous quarterly dividend of $0.60. This represents a $2.80 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Wednesday, October 8th. InterDigital’s payout ratio is 19.96%.

Insider Activity at InterDigital

In related news, CTO Rajesh Pankaj sold 1,000 shares of the stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $338.08, for a total value of $338,080.00. Following the completion of the sale, the chief technology officer owned 65,122 shares of the company’s stock, valued at approximately $22,016,445.76. This trade represents a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joshua D. Schmidt sold 466 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 28,370 shares of the company’s stock, valued at approximately $7,748,414.40. This represents a 1.62% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,466 shares of company stock valued at $1,016,164. Insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On InterDigital

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Moran Wealth Management LLC increased its holdings in shares of InterDigital by 0.6% in the third quarter. Moran Wealth Management LLC now owns 4,751 shares of the Wireless communications provider’s stock valued at $1,640,000 after purchasing an additional 29 shares during the last quarter. CoreCap Advisors LLC increased its stake in InterDigital by 15.6% during the third quarter. CoreCap Advisors LLC now owns 245 shares of the Wireless communications provider’s stock worth $85,000 after acquiring an additional 33 shares during the last quarter. Teacher Retirement System of Texas increased its stake in InterDigital by 0.4% during the second quarter. Teacher Retirement System of Texas now owns 11,388 shares of the Wireless communications provider’s stock worth $2,554,000 after acquiring an additional 41 shares during the last quarter. Creative Planning increased its stake in InterDigital by 0.3% during the second quarter. Creative Planning now owns 15,345 shares of the Wireless communications provider’s stock worth $3,441,000 after acquiring an additional 46 shares during the last quarter. Finally, Farther Finance Advisors LLC increased its stake in InterDigital by 2.7% during the second quarter. Farther Finance Advisors LLC now owns 2,029 shares of the Wireless communications provider’s stock worth $455,000 after acquiring an additional 54 shares during the last quarter. 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.