InterDigital (NASDAQ:IDCC) Downgraded by Wall Street Zen to Sell

InterDigital (NASDAQ:IDCC) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

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

InterDigital Stock Performance

Shares of IDCC stock opened at $358.50 on Friday. 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 has a fifty-two week low of $180.60 and a fifty-two week high of $412.60. The company has a market capitalization of $9.21 billion, a P/E ratio of 30.05 and a beta of 1.58. The stock has a 50 day moving average price of $333.45 and a two-hundred day moving average price of $331.99.

InterDigital (NASDAQ:IDCC) last issued its 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 company had revenue of $158.23 million for the quarter, compared to the consensus estimate of $155.57 million. InterDigital had a net margin of 48.76% and a return on equity of 41.09%. The firm’s revenue for the quarter was down 37.4% on a year-over-year basis. During the same period in the previous year, the firm earned $5.15 earnings per share. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS. Analysts expect that InterDigital will post 9.21 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director John D. Jr. Markley sold 700 shares of the business’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $374.95, for a total value of $262,465.00. Following the completion of the transaction, the director owned 11,223 shares in the company, valued at $4,208,063.85. The trade was a 5.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Lawrence Liren Chen sold 5,958 shares of InterDigital stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $327.62, for a total value of $1,951,959.96. Following the completion of the sale, the chief executive officer owned 153,077 shares of the company’s stock, valued at $50,151,086.74. The trade was a 3.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 45,087 shares of company stock worth $15,029,098. 2.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kemnay Advisory Services Inc. bought a new stake in InterDigital in the 4th quarter worth approximately $26,000. Twin Peaks Wealth Advisors LLC purchased a new position in shares of InterDigital in the 2nd quarter worth $28,000. Root Financial Partners LLC bought a new stake in shares of InterDigital in the third quarter worth $30,000. Leonteq Securities AG purchased a new stake in InterDigital during the fourth quarter valued at $35,000. Finally, Aster Capital Management DIFC Ltd lifted its holdings in InterDigital by 186.8% in the third quarter. Aster Capital Management DIFC Ltd now owns 109 shares of the Wireless communications provider’s stock valued at $38,000 after acquiring an additional 71 shares during the period. 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.