InterDigital (NASDAQ:IDCC) Shares Gap Up – Here’s What Happened

InterDigital, Inc. (NASDAQ:IDCC)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $253.91, but opened at $275.00. InterDigital shares last traded at $289.7140, with a volume of 172,876 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on IDCC shares. Jefferies Financial Group restated a “buy” rating on shares of InterDigital in a report on Wednesday, March 18th. Weiss Ratings restated a “buy (b)” rating on shares of InterDigital in a report on Friday, May 1st. Finally, Wall Street Zen upgraded shares of InterDigital from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, InterDigital presently has a consensus rating of “Moderate Buy” and an average target price of $416.67.

InterDigital Stock Performance

The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.01. The firm’s 50-day simple moving average is $301.38 and its two-hundred day simple moving average is $327.05. The company has a market cap of $7.25 billion, a PE ratio of 26.48 and a beta of 1.43.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 EPS for the quarter, beating the consensus estimate of $2.54 by $0.03. The company had revenue of $205.42 million for the quarter, compared to analyst estimates of $196.85 million. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The firm’s revenue was down 2.4% on a year-over-year basis. During the same period in the prior year, the company earned $3.45 earnings per share. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS. As a group, research analysts anticipate that InterDigital, Inc. will post 7.41 earnings per share for the current fiscal year.

InterDigital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 8th were given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Wednesday, April 8th. InterDigital’s dividend payout ratio is 26.37%.

Insider Activity

In related news, CTO Rajesh Pankaj sold 750 shares of the firm’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $258.38, for a total transaction of $193,785.00. Following the completion of the sale, the chief technology officer directly owned 70,976 shares in the company, valued at approximately $18,338,778.88. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Joshua D. Schmidt sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $348.21, for a total transaction of $2,089,260.00. Following the sale, the insider owned 25,889 shares of the company’s stock, valued at approximately $9,014,808.69. The trade was a 18.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 8,250 shares of company stock valued at $2,752,995. 2.80% of the stock is owned by company insiders.

Institutional Trading of InterDigital

Several hedge funds have recently added to or reduced their stakes in the company. Keybank National Association OH raised its holdings in InterDigital by 4.5% in the first quarter. Keybank National Association OH now owns 704 shares of the Wireless communications provider’s stock valued at $213,000 after acquiring an additional 30 shares in the last quarter. Amundi grew its stake in shares of InterDigital by 0.3% in the 4th quarter. Amundi now owns 10,084 shares of the Wireless communications provider’s stock valued at $3,210,000 after purchasing an additional 30 shares during the last quarter. Kestra Private Wealth Services LLC increased its stake in InterDigital by 2.0% in the 4th quarter. Kestra Private Wealth Services LLC now owns 1,956 shares of the Wireless communications provider’s stock valued at $623,000 after buying an additional 39 shares during the period. MGO One Seven LLC increased its stake 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 period. Finally, J2 Capital Management Inc boosted its position in shares of InterDigital by 3.0% during the 1st quarter. J2 Capital Management Inc now owns 1,451 shares of the Wireless communications provider’s stock worth $438,000 after purchasing an additional 42 shares in the last quarter. Institutional investors and hedge funds own 99.83% of the company’s stock.

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.