InterDigital (NASDAQ:IDCC) Stock Price Down 6% After Insider Selling

InterDigital, Inc. (NASDAQ:IDCC) shares were down 6% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $355.01 and last traded at $354.0350. Approximately 28,463 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 288,886 shares. The stock had previously closed at $376.60.

Specifically, CTO Rajesh Pankaj sold 1,000 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $326.26, for a total transaction of $326,260.00. Following the transaction, the chief technology officer directly owned 61,196 shares in the company, valued at approximately $19,965,806.96. This represents a 1.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Wall Street Analysts Forecast Growth

IDCC has been the topic of several analyst reports. Jefferies Financial Group set a $475.00 price objective on shares of InterDigital and gave the company a “buy” rating in a report on Thursday, October 30th. Weiss Ratings cut shares of InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a research report on Monday, December 29th. Roth Mkm restated a “buy” rating on shares of InterDigital in a research report on Tuesday, January 20th. UBS Group set a $425.00 price objective on InterDigital in a report on Monday, December 1st. Finally, Zacks Research lowered InterDigital from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 21st. Four equities research 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, InterDigital has a consensus rating of “Moderate Buy” and a consensus target price of $416.67.

InterDigital Trading Down 6.8%

The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $9.02 billion, a P/E ratio of 29.43 and a beta of 1.58. The company has a fifty day simple moving average of $332.17 and a two-hundred day simple moving average of $326.55.

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

InterDigital Dividend Announcement

The business also recently declared 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 is 23.47%.

Institutional Investors Weigh In On InterDigital

Several large investors have recently made changes to their positions in the stock. Moran Wealth Management LLC boosted its stake in InterDigital by 0.6% in the 3rd quarter. Moran Wealth Management LLC now owns 4,751 shares of the Wireless communications provider’s stock worth $1,640,000 after purchasing an additional 29 shares during the period. CoreCap Advisors LLC lifted its holdings in shares of InterDigital by 15.6% in the third quarter. CoreCap Advisors LLC now owns 245 shares of the Wireless communications provider’s stock valued at $85,000 after purchasing an additional 33 shares in the last quarter. Kestra Private Wealth Services LLC lifted its holdings in shares of InterDigital by 2.0% in the fourth quarter. Kestra Private Wealth Services LLC now owns 1,956 shares of the Wireless communications provider’s stock valued at $623,000 after purchasing an additional 39 shares in the last quarter. Teacher Retirement System of Texas boosted its position in shares of 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 buying an additional 41 shares during the period. Finally, MGO One Seven LLC grew its holdings in shares of InterDigital by 5.2% during the fourth quarter. MGO One Seven LLC now owns 835 shares of the Wireless communications provider’s stock worth $266,000 after buying an additional 41 shares in the last quarter. Institutional investors own 99.83% of the company’s stock.

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.