InterDigital (NASDAQ:IDCC) Raised to “Strong-Buy” at Zacks Research

InterDigital (NASDAQ:IDCC) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Thursday,Zacks.com reports.

Separately, Weiss Ratings downgraded InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $416.67.

InterDigital Stock Up 0.5%

Shares of IDCC opened at $304.83 on Thursday. The company has a 50-day simple moving average of $270.56 and a 200-day simple moving average of $311.00. The firm has a market capitalization of $7.88 billion, a P/E ratio of 35.16 and a beta of 1.42. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.88 and a current ratio of 1.74. InterDigital has a 52 week low of $247.66 and a 52 week high of $412.60.

InterDigital (NASDAQ:IDCC) last released its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating 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 last year, the company earned $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. On average, equities research analysts expect that InterDigital will post 7.41 earnings per share for the current year.

Insider Buying and Selling at InterDigital

In other InterDigital news, Director Derek K. Aberle sold 522 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $144,406.08. Following the completion of the transaction, the director owned 7,620 shares in the company, valued at $2,107,996.80. This trade represents a 6.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Jr. Markley sold 400 shares of InterDigital stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $300.00, for a total value of $120,000.00. Following the sale, the director directly owned 11,735 shares in the company, valued at $3,520,500. The trade was a 3.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,872 shares of company stock worth $1,654,159 in the last 90 days. 3.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On InterDigital

A number of hedge funds have recently modified their holdings of IDCC. Price T Rowe Associates Inc. MD raised its position in InterDigital by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock valued at $707,477,000 after purchasing an additional 854,845 shares during the last quarter. Norges Bank bought a new stake in shares of InterDigital during the fourth quarter worth $128,918,000. Royal Bank of Canada increased its stake in shares of InterDigital by 375.7% in the first quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider’s stock valued at $60,297,000 after buying an additional 157,687 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of InterDigital by 135.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 219,388 shares of the Wireless communications provider’s stock valued at $66,255,000 after buying an additional 126,328 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider’s stock valued at $251,250,000 after buying an additional 123,686 shares during the last quarter. 99.83% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company’s first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million–$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85–$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million–$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance?
• Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration.
• Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs

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.