IDT (NYSE:IDT) Shares Gap Up After Strong Earnings

IDT Corporation (NYSE:IDT) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $54.03, but opened at $56.99. IDT shares last traded at $55.90, with a volume of 19,580 shares changing hands.

The utilities provider reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.05. IDT had a net margin of 6.49% and a return on equity of 25.97%. The business had revenue of $315.71 million for the quarter, compared to analyst estimates of $308.00 million.

IDT Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Tuesday, June 9th will be issued a $0.07 dividend. The ex-dividend date of this dividend is Tuesday, June 9th. This represents a $0.28 dividend on an annualized basis and a yield of 0.5%. IDT’s dividend payout ratio (DPR) is 8.59%.

More IDT News

Here are the key news stories impacting IDT this week:

• Positive Sentiment: IDT beat quarterly expectations, reporting EPS of $0.94 versus the $0.89 consensus and revenue of $315.7 million versus $308.0 million expected, reinforcing the earnings momentum behind the stock. IDT earnings report
• Positive Sentiment: The company posted record consolidated quarterly gross profit of $122.5 million and improved gross margin to 38.8%, suggesting stronger profitability and operating leverage. IDT Q3 2026 results
• Positive Sentiment: Management raised FY 2026 Adjusted EBITDA guidance to $150 million-$152 million from $147 million-$149 million, signaling confidence in continued execution. Guidance raise
• Positive Sentiment: Growth was broad-based in the key higher-margin segments: NRS operating income rose 33%, Fintech 29%, and net2phone 76%, which supports the view that IDT is diversifying away from lower-growth legacy communications. Earnings call transcript
• Positive Sentiment: The board declared a quarterly dividend of $0.07 per share, which is a modest shareholder-return positive and may help support investor sentiment. Dividend announcement
• Neutral Sentiment: Zacks highlighted IDT as a small cap with recurring revenue and a strong balance sheet, which may support the investment case but is unlikely to be a major near-term stock driver. Zacks article
• Negative Sentiment: Operating cash flow fell sharply year over year, though management said the decline was due to working-capital timing; investors may still watch cash generation closely. Cash flow detail
• Negative Sentiment: Insider trading data showed no purchases and nine sales over the past six months, which can be a mild headwind for sentiment despite the strong fundamentals. Insider trading data

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Wall Street Zen cut shares of IDT from a “strong-buy” rating to a “buy” rating in a research report on Sunday, May 3rd. Weiss Ratings restated a “hold (c+)” rating on shares of IDT in a report on Friday, March 27th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, IDT currently has an average rating of “Hold”.

Insider Transactions at IDT

In other news, EVP Menachem Ash sold 20,000 shares of the business’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $51.00, for a total value of $1,020,000.00. Following the completion of the sale, the executive vice president owned 32,243 shares of the company’s stock, valued at approximately $1,644,393. The trade was a 38.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Marcelo Fischer sold 5,000 shares of IDT stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $50.50, for a total value of $252,500.00. Following the completion of the transaction, the chief financial officer owned 56,147 shares of the company’s stock, valued at approximately $2,835,423.50. The trade was a 8.18% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 25.41% of the company’s stock.

Institutional Trading of IDT

A number of institutional investors and hedge funds have recently made changes to their positions in IDT. SG Americas Securities LLC acquired a new stake in shares of IDT in the 4th quarter worth about $748,000. Cooke & Bieler LP bought a new stake in shares of IDT during the fourth quarter valued at approximately $20,030,000. AQR Capital Management LLC grew its holdings in IDT by 40.2% in the 1st quarter. AQR Capital Management LLC now owns 58,197 shares of the utilities provider’s stock worth $2,986,000 after buying an additional 16,678 shares in the last quarter. California State Teachers Retirement System increased its position in IDT by 27.0% in the 3rd quarter. California State Teachers Retirement System now owns 19,481 shares of the utilities provider’s stock valued at $1,019,000 after acquiring an additional 4,136 shares during the period. Finally, Tudor Investment Corp ET AL increased its position in IDT by 9.1% in the 4th quarter. Tudor Investment Corp ET AL now owns 16,274 shares of the utilities provider’s stock valued at $833,000 after acquiring an additional 1,364 shares during the period. 59.34% of the stock is currently owned by institutional investors and hedge funds.

IDT Stock Performance

The firm has a 50 day simple moving average of $51.46 and a two-hundred day simple moving average of $50.50. The stock has a market cap of $1.38 billion, a P/E ratio of 16.96 and a beta of 0.68.

IDT Company Profile

IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories.

Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling.