InterDigital, Inc. (NASDAQ:IDCC) Given Consensus Recommendation of “Buy” by Brokerages

InterDigital, Inc. (NASDAQ:IDCC) has been given a consensus rating of “Buy” by the five ratings firms that are covering the company, MarketBeat reports. One equities research analyst has rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among analysts that have covered the stock in the last year is $450.00.

Several brokerages have recently weighed in on IDCC. Weiss Ratings cut InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, August 11th. Zacks Research raised InterDigital from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th.

Insider Activity

In related news, CTO Rajesh Pankaj sold 1,500 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $338.00, for a total transaction of $507,000.00. Following the transaction, the chief technology officer directly owned 65,016 shares in the company, valued at approximately $21,975,408. The trade was a 2.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 300 shares of the company’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $331.06, for a total transaction of $99,318.00. Following the sale, the director directly owned 22,736 shares in the company, valued at $7,526,980.16. This trade represents a 1.30% 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. In the last 90 days, insiders sold 5,200 shares of company stock valued at $1,642,638. 3.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Keybank National Association OH boosted its position in shares of InterDigital by 4.5% during the first quarter. Keybank National Association OH now owns 704 shares of the Wireless communications provider’s stock valued at $213,000 after buying an additional 30 shares during the last quarter. MGO One Seven LLC raised its position in InterDigital by 5.2% in the 4th quarter. MGO One Seven LLC now owns 835 shares of the Wireless communications provider’s stock valued at $266,000 after buying an additional 41 shares during the last quarter. J2 Capital Management Inc raised its position in InterDigital by 3.0% in the 1st quarter. J2 Capital Management Inc now owns 1,451 shares of the Wireless communications provider’s stock valued at $438,000 after buying an additional 42 shares during the last quarter. IFP Advisors Inc lifted its stake in InterDigital by 3.7% during the 2nd quarter. IFP Advisors Inc now owns 1,292 shares of the Wireless communications provider’s stock valued at $366,000 after acquiring an additional 46 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in InterDigital by 1.0% during the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,436 shares of the Wireless communications provider’s stock worth $1,944,000 after acquiring an additional 62 shares during the last quarter. 99.83% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: InterDigital’s record recurring revenue, an Amazon licensing agreement and a raised 2026 outlook support the investment case. These factors suggest continued strength in the company’s patent-licensing business despite the relatively limited share-price appreciation over the past year. IDCC Gains Just 5% in a Year: Should It Still Be in Your Portfolio?
• Neutral Sentiment: Zacks Research maintained its Strong Buy rating. Its current full-year EPS estimate of $9.64 remains close to the broader consensus of $9.76, while its FY2028 forecast stands at $10.65, indicating continued expected earnings growth despite near-term revisions. InterDigital analyst estimates
• Negative Sentiment: Zacks lowered its FY2026 EPS estimate to $9.64 from $10.13 and cut its Q4 2026 forecast sharply to $1.73 from $2.13. It also reduced estimates for Q3 2027, Q4 2027, Q1 2028, Q2 2028 and FY2028, suggesting analysts see somewhat weaker earnings momentum than previously expected.
• Negative Sentiment: The only upward revision was to Q2 2027 EPS, increased to $1.97 from $1.91. However, this was outweighed by smaller cuts to several other quarterly forecasts, including Q1 2028 EPS to $2.37 from $2.39 and Q2 2028 EPS to $2.63 from $2.68. Q3 EPS Estimates for InterDigital Cut by Zacks Research

InterDigital Price Performance

NASDAQ IDCC opened at $326.08 on Wednesday. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.01. InterDigital has a 12-month low of $249.14 and a 12-month high of $412.60. The company has a market capitalization of $8.42 billion, a PE ratio of 37.61 and a beta of 1.43. The firm’s 50 day moving average is $312.44 and its 200-day moving average is $310.13.

InterDigital (NASDAQ:IDCC) last announced its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, topping the consensus estimate of $0.90 by $3.72. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The business had revenue of $260.17 million during the quarter, compared to analysts’ expectations of $143.10 million. During the same quarter in the prior year, the company posted $6.52 earnings per share. The firm’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. Equities research analysts anticipate that InterDigital will post 9.52 earnings per share for the current fiscal year.

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Wednesday, October 14th will be paid a dividend of $0.75 per share. The ex-dividend date is Wednesday, October 14th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.9%. This is an increase from InterDigital’s previous quarterly dividend of $0.70. InterDigital’s dividend payout ratio (DPR) is currently 32.30%.

About InterDigital

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.