InterDigital (NASDAQ:IDCC) Stock Rating Lowered by Wall Street Zen

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

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

InterDigital Stock Up 2.9%

Shares of NASDAQ IDCC opened at $358.50 on Friday. The stock has a market capitalization of $9.21 billion, a P/E ratio of 30.05 and a beta of 1.58. The stock’s fifty day moving average is $333.45 and its 200 day moving average is $332.86. InterDigital has a 52 week low of $180.60 and a 52 week high of $412.60. 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 (NASDAQ:IDCC) last announced its quarterly earnings data on Thursday, February 5th. The Wireless communications provider reported $2.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.65 by $0.47. The firm 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 business’s revenue for the quarter was down 37.4% on a year-over-year basis. During the same period in the prior year, the company posted $5.15 earnings per share. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS. Sell-side analysts forecast that InterDigital will post 9.21 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Rajesh Pankaj sold 1,000 shares of the business’s stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $326.26, for a total transaction of $326,260.00. Following the sale, the chief technology officer directly owned 61,196 shares in the company, valued at approximately $19,965,806.96. The trade was a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Lawrence Liren Chen sold 5,958 shares of the firm’s stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $327.62, for a total transaction of $1,951,959.96. Following the completion of the transaction, the chief executive officer owned 153,077 shares of the company’s stock, valued at approximately $50,151,086.74. This trade represents a 3.75% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 45,087 shares of company stock valued at $15,029,098. 2.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On InterDigital

Large investors have recently modified their holdings of the business. Invesco Ltd. grew its stake in shares of InterDigital by 24.8% in the fourth quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider’s stock worth $143,546,000 after purchasing an additional 89,647 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in InterDigital by 10.0% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 3,483 shares of the Wireless communications provider’s stock worth $1,109,000 after buying an additional 316 shares during the period. First Citizens Bank & Trust Co. acquired a new position in InterDigital during the 4th quarter worth about $940,000. EP Wealth Advisors LLC bought a new stake in shares of InterDigital in the 4th quarter valued at about $318,000. Finally, Mackenzie Financial Corp increased its stake in shares of InterDigital by 45.7% in the fourth quarter. Mackenzie Financial Corp now owns 6,633 shares of the Wireless communications provider’s stock valued at $2,152,000 after buying an additional 2,079 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.